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Mallinckrodt considers second bankruptcy filing, other options

(Reuters) -Mallinckrodt Plc said on Monday it was considering a second bankruptcy filing and other options after its lenders raised concerns over an upcoming $200 million payment related to opioid-related litigation.

Its shares dropped 22.9% to $1.9 in premarket trading.

The drugmaker emerged from bankruptcy last year after winning court approval for a reorganization plan that included a $1.7 billion settlement of the litigation.

The trust which was owed the $200 million by June 16 had sent Mallinckrodt a letter demanding timely payment and threatening action in the event of a default, the company said in a filing.

Its board was considering all options, with some lenders having proposed actions other than filing for bankruptcy, but there can be no assurance of the outcome of the process, Mallinckrodt said.

The Ireland-based company makes generic drugs, including opioids, and branded drugs such as Acthar Gel, which is used to treat multiple sclerosis and infantile spasms.

The Wall Street Journal first reported on Friday that Mallinckrodt was considering a bankruptcy filing.

(Reporting by Manas Mishra in Bengaluru; Editing by Devika Syamnath)


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