Mallinckrodt seeks post-confirmation exclusivity extension

By Sarah Lizee

Olympia, Wash., March 9 – Mallinckrodt plc is seeking a post-confirmation 35-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the plan filing period through April 12 and the solicitation period through June 13.

The company said it is filing the motion out of an “abundance of caution.”

Mallinckrodt said the proposed extension will allow the debtors enough time to complete the tasks necessary to implement the confirmed plan, which will put $450 million to work, almost entirely toward abatement of the opioid-addiction epidemic.

It will also provide $135 million in cash for other general unsecured creditors, resolve numerous multi-pronged litigations, and allow the debtors to emerge from Chapter 11 as a healthier enterprise to continue providing critical care and necessary drugs to patients, the company said.

“In short, the debtors have come a long way towards achieving a largely consensual, confirmed plan that will provide overwhelmingly positive results for countless parties in interest, and extending the exclusive periods is essential to concluding the Irish examinership proceedings and implementing the plan,” the company said in its motion.

A hearing is scheduled for March 31.

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.

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