Alta Acts in Response to Stunning Disclosures by Mallinckrodt and Foreshadowing of Bankruptcy Filing

NEW YORK, June 17, 2023 /PRNewswire/ -- Alta Fundamental Advisers LLC ("Alta") filed an SEC Schedule 13D earlier today in connection with investments in the ordinary shares of Mallinckrodt Plc ("Mallinckrodt" or the "Company").  Alta is an institutional investment manager headquartered in New York, NY.   Alta's Schedule 13D disclosed Alta's issuance of a letter earlier today to Mallinckrodt's Board of Directors requisitioning the Board to convene an extraordinary general meeting of Mallinckrodt's shareholders.

Earlier this week, Mallinckrodt issued an SEC Form 8-K filed June 15, 2023 ("8-K") in which it disclosed that it "is actively evaluating the Company's financial situation and considering options" promoted by the Company's debtholders and other "stakeholders." The Company also disclosed its decision to default on credit obligations and that it is considering a "near term" bankruptcy filing.

In response to the 8-K and the troubling disclosures therein, as disclosed in its Schedule 13D, Alta expressed concerns to the Board regarding the Board's ability to manage Mallinckrodt's business affairs and the historical conduct of members of the Board and management.   Alta questioned how the 8-K squares with very recent positive public statements by Mallinckrodt.  It also observed how the purported overnight deterioration in the Company's financial situation eviscerates any lingering confidence in management's candor and compliance with its disclosure obligations, and ability to adapt to and address the circumstances described in the 8-K.

As noted, by its letter, Alta provided the Board with notice of the exercise of Alta's right to compel the Board to call an extraordinary general meeting under the Companies Act 2014.  At this meeting, Alta intends to introduce a resolution to remove and replace some or all of the members of the Board of Directors. Alta believes that it will obtain the support of the majority of the Company's shareholders in connection with this imperative initiative and fully expects to replace some or all of the current Board of Directors at this meeting with individuals who are up to the task.  Alta admonished the current Board of Directors against taking extraordinary action along the lines suggested by the 8-K in the interim.