The US Bankruptcy Court approved the amended plan of reorganization of Mallinckrodt plc on October 10, 2023. The debtor has filed its amended plan in the Court on September 29, 2023. As per the amended plan, administrative claims, professional fee claims, priority tax claims, other priority claims, United States Trustee statutory fees, shall be paid in full in cash.

DIP Claims of $280 million shall be paid from from (i) if the DIP Cash Sweep Trigger occurs, the DIP Cash Sweep, and/or (ii) the Syndicated Exit Financing, if any, provided that, to the extent that the net proceeds of the Syndicated Exit Financing and the DIP Cash Sweep are collectively less than $280 million, the remaining DIP Claims will be converted on a dollar-for-dollar basis into New First Priority Takeback Term Loans in the amount of such shortfall. Other secured claims of $1 million - $5 million shall receive payment in full in cash or shall receive collateral securing such claim. First lien claims of $2,861.91 million (Term loan of $1716.87 million, 2025 First Lien Notes Claims of $495.03 million and 2028 First Lien Notes of $650 million) and estimated recovery of 81-95% shall receive its Pro Rata Share of the First Lien New Common Equity, Cash in an amount sufficient to repay in full the Accrued and Unpaid Interest and Cash from the Exit Minimum Cash Sweep, if the Exit Minimum Cash Sweep Trigger occurs and/or the net proceeds of the Syndicated Exit Financing, if any, after the repayment of all applicable Allowed DIP Claims, and if applicable, the New Second Priority Takeback Debt.

Second Lien Notes Claims of $650.19 million with estimated recovery of 11-16% shall receive its Pro Rata Share of 7.7% of the New Common Equity. General unsecured claims shall receive its payment in cash. Subordinated Claims shall be cancelled, released, discharged, and extinguished without any distribution.

Intercompany claims and intercompany interests shall be reinstated. Existing Equity Interests shall be cancelled, released, discharged, and extinguished without any distribution. The plan shall be funded through cash, new term loan facility, new AR revolving facility of $200 million, new takeback term loans, cram-down first lien notes, cram-down second lien notes, takeback second lien notes and by issuance of new Mallinckrodt ordinary shares by the reorganized debtor and the MDT II CVRs