These letters have holders of notes due in 2027 and 2029 expressing issues with the company’s current financial situation. This has some of these holders suggesting a review from the board of directors to best determine how to handle financial responsibilities.
Among those suggestions are the company exploring strategic options. The noteholders even go so far as to suggest that Mallinckrodt could enter Chapter 11 bankruptcy to facilitate the sale of certain assets. Others don’t believe a bankruptcy filing is necessary.
Mallinckrodt gave the following response to these letters in a filing with the Securities and Exchange Commission (SEC):
“The Board is actively evaluating this situation and considering options, including transactions that have been proposed by the Holders and other Company stakeholders, as well as the viewpoints of the various parties in interest. On June 2, 2023, the Board directed management and the Company’s advisors to continue analyzing various proposals and engaging in discussions with various parties related to these options and viewpoints.”
MNK Stock Movement Today
Shares of MNK stock are falling hard following this news, but investors aren’t dumping the stock just yet. As of this trading, only about 100,000 shares of Mallinckrodt’s shares have changed hands. That’s still a ways off from its daily average trading volume of about 1.4 million shares.
MNK stock is down 22.5% as of Monday morning.
Investors looking for even more of the most recent stock market news will want to keep reading!
We have all of the biggest stock market stories traders need to know about on Monday! A few examples include why shares of Forza X1 (NASDAQ:FRZA) and Chijet Motor (NASDAQ:CJET) stock are rising today, as well as the biggest pre-market stock movers from this morning. You can find out more on these matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.