Cooley Secures Win in Mallinckrodt Chapter 11 Case

Firm represents Official Committee of Unsecured Creditors in pharmaceutical company’s bankruptcy reorganization

New York – February 8, 2022 – Cooley has been representing the Official Committee of Unsecured Creditors of Mallinckrodt during Mallinckrodt’s ongoing bankruptcy proceedings, in which the pharmaceutical company’s Chapter 11 plan of reorganization was recently confirmed after a contentious multiweek trial, marking a defining moment in the case. Cooley partners Cullen Speckhart, Ian Shapiro, Philip Bowman, Michael Klein, Cathy Hershcopf and Jonathan Kim led the team advising the Official Committee of Unsecured Creditors.

“Cooley is thrilled to be part of delivering this tremendous result for unsecured creditors in the Mallinckrodt reorganization,” Speckhart said. “This excellent result follows the impactful use of multiple cross-disciplinary Cooley teams.”

Under the confirmed plan of reorganization, non-opioid unsecured creditors will receive significant monetary consideration through a trust that will be established for their benefit. The trust will have $135 million in immediate cash, with the potential to monetize certain other noncash assets to increase the trust’s distributable value. This treatment is the result of a hard-fought settlement negotiated by the Official Committee of Unsecured Creditors that prevents years of value-destructive litigation over complex legal issues, and it positions non-opioid unsecured creditors to receive payments shortly after Mallinckrodt emerges from bankruptcy, which the company expects to occur in the first half of 2022. 

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Related Contacts
Cullen Drescher Speckhart  Partner in Charge – Washington, DC Washington, DC, New York
Ian Shapiro  Partner New York
Philip Bowman  Partner New York
Michael Klein  Partner New York
Cathy Hershcopf  Partner New York
Bobby Earles  Partner Chicago
Aric Wu  Partner New York
Sonia Nath  Partner Washington, DC
Heidi Lawson  Partner New York, London
Reed Smith  Special Counsel New York
Joshua Siegel  Special Counsel Washington, DC
Erica Richards  Special Counsel New York
Summer M. McKee  Associate New York
Lauren A. Reichardt  Associate New York
Evan Lazerowitz  Associate New York
Georgina Inglis  Associate Washington, DC
Charlie Low  Associate New York
Paul Springer  Associate New York
Courtney Gladstone  Associate Washington, DC
Joe Brown  Associate Washington, DC
Weiru Fang  Associate Washington, DC
Jeremiah P. Ledwidge  Associate New York