Mallinckrodt readies retention bonuses in event of bankruptcy filing

Generic-drug maker Mallinckrodt
MNK,
+17.69%
on Wednesday said it set aside more than $3.4 million in executive retention bonuses in the event of a possible filing for yet another bankruptcy. The move is latest sign of difficulty for the company, which has struggled to pay its bills in the wake of a $1.7 billion opioid settlement following allegations it helped propel the nation’s opioid crisis. The disclosure on Wednesday, made in a filing, comes after the company last week said it reached an agreement to push back the due date of a $200 million payment from that settlement from June 16 to June 23. The company this month also opted not to make interest payments, and disclosed that some debt holders had proposed a second bankruptcy filing. Mallinckrodt emerged from Chapter 11 last year. Shares were unchanged after hours.