Mallinckrodt sinks after saying bankruptcy possible in near-term

Mallinckrodt said earlier today in its earnings release, "The Company has identified several negative conditions and events impacting the business as of June 26, 2020. Due to pressures from the Acthar Gel Medicaid matter, the ongoing opioid litigation and the Company's existing debts and the related risk of non-compliance with its financial debt covenant over the next twelve months, the Company has been working with external advisors to explore a range of options and engage in dialogue with financial creditors and litigation claimants and their advisors, including the possibility of a filing for reorganization in bankruptcy under Chapter 11 by Mallinckrodt plc and most of its subsidiaries in the near-term. However, these plans have not yet been finalized nor are they fully within the Company's control." Shares of Mallinckrodt are down 24%, or 55c, to $1.71 in morning trading.