Mallinckrodt to Close Bankruptcy Exit Bond as Soon as This Week

Mallinckrodt Plc. is working fast to close a $650 million bond issuance -- funded largely by existing creditors -- after pickier credit market participants forced a change of plan for the company’s emergence from Chapter 11 bankruptcy.

The drugmaker could close the deal as early as this week or early next, Anu Yerramalli of law firm Latham & Watkins said on behalf of the company in a bankruptcy hearing Monday. Mallinckrodt turned to a group of current bondholders to help fund its exit proposal after a $900 million leveraged loan offering languished and was ultimately pulled.

Continued volatility ...