As
previously disclosed, the Board of Directors (the “Board”) of Mallinckrodt plc (the “Company”) is engaged in discussions
with various stakeholders, including parties holding substantial positions across the Company’s capital structure and
representatives of the Opioid Master Disbursement Trust II (the “Trust”). The Board is actively evaluating the
Company’s capital needs in light of its obligations under its opioid settlement
and its long-term debt, and is considering options, including transactions that have been proposed by holders of various
series of the Company’s indebtedness and other Company stakeholders, as well as the viewpoints of various parties in
interest.
As
previously disclosed, in connection with these ongoing discussions, on June 15, 2023, the Company, certain subsidiaries of
the Company and the Trust (collectively, the “Parties”) entered into Amendment No. 1 (the “Amendment”) to
that certain Opioid Deferred Cash Payments Agreement, dated as of June 16, 2022, among the
Parties (the “Opioid Deferred Cash Payments Agreement”). The Amendment extended to June 23, 2023, from June 16,
2023, the date on which a $200 million payment (the “Opioid Deferred Cash Payment”) is required to be made to the Trust.
On
June 22, 2023, pursuant to the Amendment, the Trust provided written notice that it was further extending the due date of the Opioid Deferred Cash Payment from June 23, 2023 to June 30, 2023. The Company recognizes the
important role of the Trust in helping to address the nation’s opioid crisis and fund addiction treatment and related efforts.
Under the Opioid Deferred Cash Payments Agreement, which was originally entered into by the Parties upon the Company’s emergence
from bankruptcy on June 16, 2022 (the “Effective Date”), the Company and certain of its subsidiaries agreed to make
certain deferred payments to the Trust, including a $450 million payment that was paid on the Effective Date.
The
Company continues to analyze its situation and engage with various stakeholders, including representatives of the Trust. There
can be no assurance of the outcome of this process, including whether or not the Company may make a filing in the near term or later under
the U.S. Bankruptcy Code or analogous foreign bankruptcy or insolvency laws.
Cautionary Statements Related to Forward-Looking Statements
Statements in this Current Report that are not
strictly historical, including statements regarding the Board’s ongoing evaluation and consideration of alternatives and related
actions and discussions, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act
of 1995, and involve a number of risks and uncertainties.
There are a number of important factors that could
cause actual events to differ materially from those suggested or indicated by such forward-looking statements and you should not place
undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other things: changes
in the Company’s business strategy and performance; the Company’s ability to access the capital markets now or in the future;
the liquidity, results of operations and businesses of the Company and its subsidiaries; the effects of the Company’s determination
not to make certain interest payments due to certain of its creditors; the possibility that the Company and/or certain of its subsidiaries
voluntarily initiate proceedings under Chapter 11 of the U.S. Bankruptcy Code or foreign bankruptcy or insolvency laws and the potential
effects of the initiation of such proceedings and the resulting bankruptcy or insolvency process on the Company’s liquidity, results
of operations and business; governmental investigations and inquiries, regulatory actions and lawsuits; actions taken by third parties,
including the Company’s creditors, the Trust and other stakeholders; court actions; the Company’s ability to achieve expected
benefits from its prior restructuring activities; the Company’s substantial indebtedness, its ability to generate sufficient cash
to reduce its indebtedness and its potential need and ability to incur further indebtedness; the Company’s ability to generate sufficient
cash to service indebtedness; restrictions on the Company’s operations contained in the agreements governing the Company’s
indebtedness; the impact of Irish laws; and the risks, uncertainties and factors described in the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K
for the fiscal year ended December 30, 2022 and the Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2023, as filed with the SEC and available on the Company’s website at http://www.mallinckrodt.com and http://www.sec.gov.
The forward-looking statements made herein speak
only as of the date hereof and the Company does not assume any obligation to update or revise any forward-looking statement, whether as
a result of new information, future events and developments or otherwise, except as required by law.