Mallinckrodt mixed on settlement news; PG&E better in run-up to restructuring plan

By James McCandless

San Antonio, Sept. 6 – At the end of the week, the distressed space was subdued with focus on the pharmaceuticals and utilities space.

Mallinckrodt plc’s notes varied in direction after the company announced a settlement with two Ohio counties over opioid-related claims.

The 4 7/8% senior notes due 2020 added 4½ points to close at 62 bid. The 5¾% senior notes due 2022 lost 2¼ points to close at 36 bid.

The Staines-upon-Thames, England-based drug manufacturer announced that it had reached an agreement to pay two Ohio counties, Summit and Cuyahoga, $24 million in cash to settle lawsuits related to the opioid epidemic.

Sector peer Endo International plc’s issues were positive on news that it had finalized a similar settlement agreement in Ohio.

Meanwhile, in utilities, PG&E Corp.’s notes performed better despite unfavorable developments from the California legislature.

The 6.05% notes due 2034 rose ¼ point to close at 108½ bid.

The San Francisco-based bankrupt electric utility was under pressure for most of the day but saw some relief in the afternoon despite unfavorable developments in the California legislature.

A bill that would have let the company use future profits to finance up to $20 billion in bonds dedicated to covering wildfire liabilities died before being considered.

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