Mallinckrodt (NYSEMKT:MNK) stock isn’t doing so hot on Wednesday after the pharmaceutical company gets ready for another bankruptcy filing.
A press release from Mallinckrodt notes that it’s going to file for bankruptcy in the coming days. The company says it is doing so as part of a restructuring agreement with first and second-lien debt holders, as well as the Opioid Master Disbursement Trust II.
Mallinckrodt says this agreement comes with several benefits for the company. That includes reducing funded debt by $1.9 billion, increasing free cash flow generation, extending its maturity runway, and better positioning the company for long-term success.
Siggi Olafsson, president and CEO of Mallinckrodt, said the following in a news release:
“After several months of constructive discussions, we are pleased to have reached this agreement with our key stakeholders, which will enable Mallinckrodt to better align our balance sheet with our current business plan.”
Not MNK’s First Bankruptcy
Investors following Mallinckrodt will note that this isn’t the first time the company has filed for bankruptcy. In fact, it’s not even the first time in recent years. The company also filed for bankruptcy less than three years ago.
Since then, Mallinckrodt has continued to feel pressure from falling business and other issues. Among these is a $1.7 billion settlement in connection to a lawsuit concerning the opioid crisis in the U.S.
MNK stock is down 10% as of Wednesday morning and is down 98.1% since the start of the year.
Traders looking for even more of the biggest stock market stories on Wednesday will want to keep reading!
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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.