The High Court has appointed an interim examiner to Dublin-based but US-run pharmaceutical company Mallinckrodt for the second time in 15 months.
Last year, the company successfully exited the examinership process following the implementation of an extensive restructuring plan which saw it reduce its debts by $1.3 billion.
It had got into financial difficulty after it settled legal actions brought against it in the United States.
The company had settled a large number of lawsuits for $1.7 billion, where it was alleged it had used deceptive and misleading marketing tactics to boost its sales of highly addictive opioid drugs.
The company had hoped the initial restructuring process would resolve its difficulties, given the level of debt it had reduced, and with new management and directors on board.
However, its lawyers told Mr Justice Michael Quinn at the High Court on Wednesday that it has been unable to achieve its goals due to difficulties that were not foreseeable in 2022.
These include a setback in its bid to launch a device used to administer a medication called Acthar, which is used to prevent seizures, as well as in the treatment of MS, lupus, eye conditions, and arthritis.
Other issues include slower than expected sales of a medication used to treat skin conditions called Therakos, and adverse economic conditions caused by the rise in interest rates.
These and other factors had adversely effected the companies financial performance and have left it insolvent, the court was told.
However, Mr Justice Quinn heard that despite these issues the company and its subsidiaries are confident that the business has a reasonable prospect of survival if a fresh scheme of arrangement can be agreed with its creditors.
As a result, the company has again sought the appointment of an examiner before the Irish courts.
It had earlier entered into what are known as Chapter 11 bankruptcy proceedings before the US courts.
Survival
The Dublin-registered company has no direct employees in Ireland, but its subsidiaries employ over 110 people at its facility in Blanchardstown, as well as over 2,500 others worldwide.
Following an application by Brian Kennedy SC, appearing with Stephen Walsh Bl for the company, Mr Justice Quinn agreed to appoint experienced insolvency practioner Michael McAteer of Grant Thornton as interim examiner to the firm.
In its petition to the court, the company said after the filing of the Chapter 11 proceedings in the US it has made proposals to its creditors aimed at saving the business.
Those proposals include a $1 billion reduction of the monies it agreed to pay out as part of the settlement of the opioid and other claims against it.
In addition, a draft scheme of arrangement, which is approved by the creditors and the court would allow the company to survive as a going concern, was submitted to the court.
The court was also told by counsel that there is no legal impediment to the court allowing a company to seek the appointment of an examiner for the second time in a relatively short period of time.
After making directions in the case, the judge adjourned the matter to a date later this month.
