: Mallinckrodt open to proposed transactions as it struggles to pay opioid settlement; stock rallies
Mallinckrodt PLC MNK shares surged in the extended session Thursday after the Dublin-based drug maker and distributor said it was open to proposed transactions as it keeps delaying a payment under an opioid settlement. Shares rallied as much as 15%, and were last up around 9% in late Thursday activity, following a 5.3% decline top close Thursday at $1.08 a share. Mallinckrodt said its board is “actively evaluating the company’s capital needs in light of its obligations under its opioid settlement and its long-term debt, and is considering options, including transactions that have been proposed by holders of various series of the company’s indebtedness and other company stakeholders, as well as the viewpoints of various parties in interest.” Last week, the company made a late interest payment, as it tries to keep up with payments in a $1.7 billion settlement, and delayed the payment of $200 million once again because of its capital position and financial obligations.
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