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DJ Mallinckrodt Taps Mediator Over $1.6B Settlement Allocation -- Market Talk

· 02/04/2021 16:49

16:49 ET - Drugmaker Mallinckrodt has picked a mediator to help resolve questions over how the drugmaker's $1.6B settlement of opioid-related litigation should be allocated among people who have asserted drug-related injuries and other creditor groups. Mallinckrodt has asked a judge to appoint Kenneth Feinberg to assist in negotiations on the allocation issue, according to court papers the drug company filed yesterday in the US Bankruptcy Court in Wilmington, Del. Resolving how proceeds will be distributed is a key obstacle to finalizing a chapter 11 plan of reorganization, Mallinckrodt says. The company filed for bankruptcy protection in October with the outline of a deal to resolve thousands of opioid-related lawsuits already in hand. (jonathan.randles@wsj.com)

(END) Dow Jones Newswires

February 04, 2021 16:49 ET (21:49 GMT)

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