Shares of Mallinckrodt PLC MNK dropped 4.8% in premarket trading Thursday, after the drug maker disclosed that it decided not to make interest payments that were due on June 15 on two senior secured notes. The company said failing to make the interest payments would constitute and event of default if the failure continues for a period of 30 days, for both the 11.50% First Lien Senior Secured Notes due 2028 and the 10.00% Second Lien Senior Secured Notes due 2029. The company said decision not to make the interest payments reflects that it continues to consider potential alternatives, including filing for bankruptcy. The decision not to make the payment comes as the company said previously that it was required to make a $200 million payment on June 16 as part of its opioid settlement. The company had previously filed for bankruptcy in October 2020 due in part to a $1.6 billion opioid settlement, and emerged from bankruptcy in June 2022. The stock has plunged 84.9% over the past three months through Wednesday, while the S&P 500 MNK has gained 12.4%.
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