Mallinckrodt statement draws objection from opioid claimants

By Sarah Lizee

Olympia, Wash., May 24 – Mallinckrodt plc’s disclosure statement for its Chapter 11 plan of reorganization drew an objection from the official committee of opioid related claimants, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The committee said three fundamental flaws render the plan “patently unconfirmable.”

The group stated that the court should deny approval of the disclosure statement until a plan is proposed that modifies the contemplated channeling of opioid claims to comport with applicable law; narrows the nonconsensual third-party releases contemplated by the plan and applies them equally to all claimants; and provides sufficient information for each opioid claimant to make an informed determination based on an understanding of the recoveries to which such claimant will, or will not, be entitled.

As previously reported, the company’s disclosure statement has also drawn objections from the U.S. trustee overseeing the case, the official committee of unsecured creditors and an informal group of first-lien noteholders

A hearing on approval of the disclosure statement is scheduled for May 26.

Dublin-based Mallinckrodt develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. The company filed Chapter 11 bankruptcy on Oct. 12, 2020 under case number 20-12522.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.