Mallinckrodt Plc MNK, a financially distressed pharmaceutical company, has paid senior executives $3.4 million in retention bonuses, the company noted in its SEC filing.
The payment was made in advance of a possible bankruptcy.
Four executives received bonuses amounting to 150% of their current base salaries.
The retention bonus plan was approved last week for key employees, including the chief financial officer, chief legal officer, chief transformation officer, and head of specialty generics.
Mallinckrodt recently reached an agreement to postpone a $200 million payment owed to a settlement trust for opioid victims.
The company has also missed interest payments owed to its senior bondholders and lenders this month.
Mallinckrodt filed for bankruptcy protection nearly three years ago. It reached a $1.7 billion nationwide settlement as part of its bankruptcy reorganization plan and emerged from Chapter 11 last year.
In an SEC filing, the company said it had received letters from several parties, including lenders, that asked the company to consider alternative options.
Price Action: MNK shares are down 21.6% at $1.20 on the last check Thursday.
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