Shares of Mallinckrodt PLC (MNK) experienced a significant surge in after-hours trading on Thursday. The Dublin-based drug maker and distributor stated that it is open to proposed transactions while continuing to delay a payment related to an opioid settlement.
Promising Market Response
The company’s shares rallied, reaching a gain of 15% at their peak, before settling at a 9% increase in late Thursday activity. This positive response follows a previous decline of 5.3% that occurred earlier in the day, leaving the shares valued at $1.08 each.
Evaluating Capital Needs
Mallinckrodt’s board is actively assessing the company’s capital needs in light of its obligations under the opioid settlement and its long-term debt. Various options are being considered, including transactions proposed by holders of the company’s indebtedness and other stakeholders. The company is also taking into account the opinions of relevant parties.
Challenging Payment Obligations
Last week, Mallinckrodt made a late interest payment in order to meet its responsibilities in a $1.7 billion settlement. However, due to its capital position and existing financial obligations, the company has once again delayed a $200 million payment.
Mallinckrodt PLC remains steadfast in its commitment to fulfilling its financial obligations while considering and evaluating various paths forward.
