Author Topic: MNK - Mallinckrodt  (Read 12060 times)

DeepSouth

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Re: MNK - Mallinckrodt
« Reply #30 on: September 12, 2019, 12:40:05 PM »
MNK up 80% in 1 day on news of selling BioVectra business for $250m.
after that sale, mcap will be less than cash? 

How relevant is that if you ignore $5.5b in debt?
the $250m isn't net proceeds?

the debt is substantial, but supported by EBITDA ... bankrtupcy only happens if the gov't forces?  it seems unamerican to force a company into bankruptcy rather than work out a deal that benefits all parties?

The EBITDA is ephemeral, the debt is not. Bankruptcy happens if they can't refi or roll their debt. MNK couldn't issue a first lien secured bond today at 12%.


walkie518

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Re: MNK - Mallinckrodt
« Reply #31 on: September 13, 2019, 08:02:13 AM »
MNK up 80% in 1 day on news of selling BioVectra business for $250m.
after that sale, mcap will be less than cash? 

How relevant is that if you ignore $5.5b in debt?
the $250m isn't net proceeds?

the debt is substantial, but supported by EBITDA ... bankrtupcy only happens if the gov't forces?  it seems unamerican to force a company into bankruptcy rather than work out a deal that benefits all parties?

The EBITDA is ephemeral, the debt is not. Bankruptcy happens if they can't refi or roll their debt. MNK couldn't issue a first lien secured bond today at 12%.

ok, but I think it's likely the attorneys make a push for resolution (good or bad) prior to restructuring? 

for instance, if they get a $200m fine rather than one for $600m, bond market should ease up?

buying the stock is like buying an option here?  might be better off buying the calls anyway?