Mallinckrodt Creditors Say Ch. 11 Plan Understates Revenues

By Jeff Montgomery (September 13, 2021, 7:11 PM EDT) -- Senior creditors of bankrupt drugmaker Mallinckrodt Corp. have objected to confirmation of its multibillion-dollar Chapter 11 plan, arguing that the company failed to take into account worldwide revenues from a breakthrough skin graft substitute recently approved by the Food and Drug Administration.

Burlingame Investment Group said late Friday that Mallinckrodt could see $75 million annually in new free cash flow worldwide in 2022 and $695 million annually from 2023 to 2032 from the StrataGraft alternative, but factored only $59 million from annual domestic sales into its plan.

"Furthermore, we believe the debtors have not included other products in the pipeline to...

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