NEW YORK, Aug. 23, 2023 /PRNewswire/ — The Trustees of the Opioid Master Disbursement Trust II (the “Opioid MDT II”) issued a statement today regarding drugmaker Mallinckrodt filing for a second bankruptcy and reaching a debt reduction deal:

“The Opioid MDT II Trustees made a difficult decision in agreeing to this resolution, but in the end felt that this was the best alternative to obtain much needed funds for opioid abatement and victim compensation on a very accelerated time frame – even if the amounts received are almost $1 billion less than originally promised by Mallinckrodt just last year. Given Mallinckrodt’s downwards spiraling financial performance and the Opioid MDT II Trust’s status as an unsecured creditor in a bankruptcy (in which approximately $3.5 billion in debt would be ahead of the Trust in priority), the Opioid MDT II Trustees believe this deal is the best possible outcome. The Opioid MDT II Trustees are very cognizant of the effects of the Opioid Crisis on states, cities, counties, tribes, individuals, babies born with NAS, and others. This is a bittersweet result that the amounts that these victims will receive from Mallinckrodt have been substantially reduced. However, given all that is known about other opioid pharmaceutical defendants, the certainty of receiving funds today rather than uncertain future payments is a priority.”

SOURCE The Trustees of the Opioid Master Disbursement Trust II (the “Opioid MDT II”)