Mallinckrodt (MNK +1.8%) is readying a bankruptcy filing within weeks, the WSJ reports, saying it may set up a battle over the company's role in the opioid crisis.
The company is talking with key creditors over a restructuring plan covering more than $5B in debt, according to the report - but that framework isn't getting support from states and territories that have sued the company and peers over opioids.
Mallinckrodt appealed a March ruling ordering the company to pay $640M in retroactive rebates tied to MS treatment Acthar, an event impacting its ability to follow through on a $1.6B February settlement with most state attorneys general over opioids.
With the $640M bill close to coming due, a Chapter 11 filing could give the company some financial breathing room.
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