Mallinckrodt Loan Collapses, Throwing Doubt on Opioid Pact (1)

Mallinckrodt Plc failed to line up funding for a loan deal designed to ease its debt load and help settle massive legal claims tied to its alleged role in the nation’s opioid crisis.

Lenders chose not to participate in a new term loan, and Mallinckrodt doesn’t expect that its existing credit agreement will be amended, the company said in a regulatory filing Wednesday. Mallinckrodt is still looking to engage in discussions with debt holders about “refinancing alternatives.”

The collapse casts doubt on Mallinckrodt’s plan to restructure the generic drug part of its business in bankruptcy. The goal was to keep ...