Modelling A.I. in Economics

Mallinckrodt in Debt Over Opioid Crisis, Seeks Payment Delay

June 15, 2023 - Mallinckrodt, a pharmaceutical company, is seeking to delay a $200 million opioid settlement payment that is due on June 16. The company is struggling to manage its debt load and is considering filing for bankruptcy again.

Mallinckrodt is one of several pharmaceutical companies that have been accused of contributing to the opioid crisis. The company has already paid $1.6 billion as part of a settlement with states and municipalities. The $200 million payment is the final installment of that settlement.

Mallinckrodt is seeking to have its lenders waive provisions that would put the firm in default on its term loans if it skipped the opioid payment. The company is also exploring other options, including filing for bankruptcy again.

A bankruptcy filing would allow Mallinckrodt to restructure its debt and get a fresh start. However, it would also likely lead to further delays in the opioid settlement payments.

The opioid crisis has been a major public health issue in the United States. Millions of people have become addicted to opioids, and tens of thousands have died from overdoses. The pharmaceutical industry has been a major target of criticism for its role in the crisis.

Mallinckrodt's decision to seek a delay in the opioid payment is a sign of the company's financial troubles. It is also a reminder of the ongoing challenges facing the pharmaceutical industry in the wake of the opioid crisis.

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