Shares of Mallinckrodt PLC
MNK,
shot up 26.5% in afternoon trading, after the drug maker said it reached an agreement to delay a $200 million opioid-settlement payment by a week. The stock’s rally comes after it closed Thursday below the $1 mark for the first time, at 87 cents. The opioid-settlement payment to the Opioid Master Disbursement Trust II, which was due June 16, pushed back to June 23. The company said it was “actively evaluating the Company’s capital needs in light of its obligations under its opioid settlement and its long-term debt,” and was engaged in discussions with various stakeholders about its options, which potentially could include a bankruptcy filing. On Thursday, the company decided to not make interest payments on two senior-secured notes that were due that day. The stock has plunged 87.0% over the past three months, while the S&P 500
SPX,
has gained 11.8%.