Modelling A.I. in Economics

Mallinckrodt on the Brink of Bankruptcy Again

Mallinckrodt PLC said on Monday that its lenders have proposed that the company file for Chapter 11 bankruptcy protection again, after it failed to make a $200 million opioid settlement payment that was due on Friday.

The company said it is evaluating the proposal and will continue to negotiate with its lenders.

Mallinckrodt filed for bankruptcy protection in 2020, and emerged from bankruptcy last year. However, the company has continued to struggle financially, due to the opioid settlement and other factors.

If Mallinckrodt does file for bankruptcy again, it would be the latest in a series of bankruptcies by pharmaceutical companies that have been involved in the opioid crisis. In recent years, several other drugmakers, including Purdue Pharma and Johnson & Johnson, have filed for bankruptcy as part of settlements with states and individuals who have been harmed by opioids.

A bankruptcy filing by Mallinckrodt would likely have a significant impact on the company's employees, suppliers, and customers. It would also raise questions about the future of the company's flagship product, Acthar Gel, a treatment for multiple sclerosis and other conditions.

Acthar Gel is a controversial product, and its sales have been declining in recent years. The company has been accused of overcharging for the drug, and it has been the subject of a number of lawsuits.

A bankruptcy filing by Mallinckrodt could lead to the sale of Acthar Gel, or it could lead to the company discontinuing the product altogether. The outcome of the bankruptcy process will have a significant impact on the future of Mallinckrodt and its stakeholders.

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