Return to Perspectives
Defining Matters
June 22, 2022

Kramer Levin Represents Ad Hoc Committee of Governmental Entities and Plaintiffs Executive Committee in Mallinckrodt Chapter 11

Kramer Levin represented the Ad Hoc Committee consisting of (i) seven state attorneys general and (ii) the Plaintiffs Executive Committee (PEC) in the multidistrict opioid litigation in the bankruptcy cases of Mallinckrodt plc and its debtor affiliates. The representation included prepetition restructuring and settlement negotiations that culminated in a Restructuring Support Agreement (RSA) that served as the catalyst for the commencement of Mallinckrodt’s bankruptcy cases and provided the framework for the eventual Plan of Reorganization. The RSA was executed by attorneys general for 50 U.S. states and territories, the PEC, and holders of 85% of Mallinckrodt’s subsidiary-guaranteed unsecured notes. The Chapter 11 plan was premised upon the equitization of $1.3 billion of funded debt and a permanent resolution of Mallinckrodt’s opioid liability. Various opioid trusts have been formed to effectuate distributions to holders of opioid claims, which will be funded through $1.725 billion of cash payments paid over a period of eight years, warrants to purchase 19.99% of the equity of the reorganized company and various claims of the company against third parties. The majority of the funds distributed to the opioid trusts are expected to be used for abatement purposes – a critical issue in addressing the damage caused by the ongoing opioid epidemic.

Related People

Related Practices

We use cookies on this website to optimize user experience and site functionality and to give you the best possible experience. We do so with your approval. The choice is up to you. Learn more.