Cooley Secures Win in Mallinckrodt Chapter 11 Case
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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