Mallinckrodt PLC disclosed that its board is considering various options to meet its upcoming financial obligations, including potentially filing for Chapter 11 protections. We are placing all ratings on CreditWatch with negative implications. The recovery ratings of '2' and '6' on the company's first-lien secured debt and second-lien secured notes, respectively, are unchanged. The CreditWatch placement with negative implications reflects heightened downside risk to our ratings that could result if Mallinckrodt skips the $200 million opioid settlement payment due this month, announces intent to file for bankruptcy protections, or pursues a distressed exchange type transaction. We expect the $200 million of annual opioid settlement payments due on June 16, 2023, and June 16, 2024, along with settlement payments of $15
