Mallinckrodt considering Chapter 11 bankruptcy protection for generics unit: WSJ

(Reuters) – Drugmaker Mallinckrodt Plc is considering a Chapter 11 filing covering its U.S. generics business, the Wall Street Journal reported on Monday citing people familiar with the matter. (https://on.wsj.com/3c3rwqH)

The company has begun confidential discussions with creditors and is considering placing its U.S. generic drug business into bankruptcy to address the debt maturities and liabilities arising out of the opioid crisis, the report said.

Mallinckrodt did not immediately respond to Reuters request for comment.

Shares fell about 32% before being halted.

(Reporting by Trisha Roy in Bengaluru; Editing by Shailesh Kuber)