Mallinckrodt Announces Anticipated Chapter 11 Emergence and Provides Update on Trading of New Ordinary Shares

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Mallinckrodt plc on Monday announced that it expects to complete its reorganization process, emerge from Chapter 11 and complete the Irish Examinership proceedings in the coming days, according to a press release. On the effective date of emergence, all of Mallinckrodt's existing ordinary shares will be canceled pursuant to the company's reorganization plan and the Irish scheme of arrangement. Mallinckrodt expects to issue at emergence 13,170,932 new ordinary shares to its guaranteed unsecured noteholders in accordance with the provisions of the plan and the scheme. In accordance with the plan, Mallinckrodt also expects to issue at emergence to the opioid claimants 3,290,675 warrants, with a strike price of $103.40, and to adopt at emergence a management incentive plan providing for the issuance to management, key employees and directors of the company of equity awards with respect to up to an aggregate of 1,829,068 shares. Mallinckrodt's new shares are anticipated to trade over-the-counter until such time as the Company relists on a national securities exchange. Read more.