Mallinckrodt, the largest maker of generic opioids, filed for bankruptcy on Monday as it faces more than $1 billion in costs from lawsuits over its role in fueling the opioid crisis.

The company in February agreed to the framework of a $1.6 billion settlement with 47 attorneys general from states and territories over opioid-related lawsuits.

On Monday, the company detailed a structure for making those settlement payments, beginning with a $450 million payment upon emerging from bankruptcy proceedings.

“For years, they balanced their business on the backs of a product they knew was dangerous and deadly,” Connecticut Attorney General William Tong said in a statement on Monday. “As Mallinckrodt now collapses and files for bankruptcy, this agreement ensures $1.6 billion will be placed in a trust and used to directly address the pain, suffering and trauma caused by the opioid epidemic.”

The company is also agreeing to terms to prevent it from marketing its opioids in the future and to put in place protections aimed at preventing abuse.

The company said it would continue to serve customers “as normal” during the bankruptcy proceedings.

The company is also agreeing to pay $260 million over disputes about its pricing of its multiple sclerosis drug Acthar Gel.

Purdue Pharma, another major opioid maker, also filed for bankruptcy last year as part of a settlement to resolve opioid lawsuits against it.

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Shares of Workhorse Group  (WKHS) – Get Report rose Monday after the electric delivery truck maker announced it will sell $200 million of four-year, 4% senior secured convertible notes to two unnamed institutional lenders.

The proceeds will be used to increase and accelerate production volume, advance new products to market, replace previous higher cost financings, and support current working capital and other general corporate purposes, the company said in a statement Monday.

Workhorse shares traded at $27.22, up 1.68%, in premarket trading. The stock has soared 781% this year through Friday as investors have rushed into electric vehicle stocks.

Workhorse also has forged an agreement with the unnamed holder of its existing 4.5% convertible notes to exchange the $70 million outstanding principal for shares of the company’s common stock. After this transaction, Workhorse will have more than $270 million in cash available.

As for the notes being purchased, they will initially be convertible into common stock by the holders at $36.14 a share, a 35% over Friday’s closing price. The interest rate may be reduced to 2.75% under certain conditions. Workhorse has the option to make interest payments in cash or stock.

The company expects that the note sale and the note exchange will occur on or about Wednesday.

“With this financing in place, we can more quickly advance our production efforts heading into 2021 by increasing our supply chain component volumes, hiring more manufacturing employees and automating certain sub-assembly processes,” Workhorse CEO Duane Hughes said.

“We can also accelerate our production timeline for new, high-demand customer products, including a refrigeration truck for grocery applications as well as a purpose-built class 2 delivery van,” Hughes added.

(Bloomberg) — EVE Energy Co., a Chinese producer of lithium-ion batteries for electric cars to earphones, is considering plans to step up purchases of key metals amid signs prices could soon rise from recent lows.

Huizhou, Guangdong-based EVE, which has pacts with automakers including Daimler AG, has seen tentative signals of a recovery in lithium and cobalt prices in China, meaning there’d be an advantage to lock in additional supplies now, Chairman Liu Jincheng said in a phone interview.

“We are seriously considering whether we can buy more while they are cheap now,” Liu said, adding that forecasts on the price outlook remain difficult.



chart: Prices of some battery materials are steadying after long declines


© Bloomberg
Prices of some battery materials are steadying after long declines

The producer is weighing its metal purchasing plans as it seeks to expand output and narrow the gap on the world’s top battery makers. EVE Energy is the fifth largest supplier to China’s EV sector, with a 5% market share, trailing behind competitors including Contemporary Amperex Technology Co. Ltd. and BYD Co., according to BloombergNEF data.

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Prices of lithium chemicals plunged from mid-2018 as producers rushed to deliver more supply, overwhelming the pace of demand gains. The materials have stabilized in recent months, though remain at about half the level of peak values, BNEF said in a report this month.

“We are expecting both Chinese domestic and seaborne lithium prices to stay flat for the next three months, and pick-up toward the end of Q4,” BNEF’s head of metals and mining Sophie Lu said by phone. Cobalt prices have recovered as Covid-19 disruptions impacted supply, and there’s potential for China’s domestic prices to rise, she said.

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Lithium prices are

(Bloomberg) — Trading in Pandora A/S shares gave the jewelry maker its highest valuation since May 2018, after it raised its guidance for the year citing a spike in online demand.



a close up of a table: Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.


© Photographer: Freya Ingrid Morales
Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.

Copenhagen-based Pandora rose more than 10% after the market opened on Friday. Denmark’s index of benchmark shares was up about 0.9%.

Management opted to publish preliminary third-quarter results late on Thursday, after a “strong” performance improved its prospects for the year. It now expects 2020 Ebit margin to reach at least 17.5%, compared with 16% previously. That’s after online organic growth of 89% in the quarter.



a close up of a table: Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.


© Photographer: Freya Ingrid Morales
Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.

Click here for more details of Pandora’s preliminary results

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Pandora seems to be getting “more bang for the buck” from its advertising, and is “catching consumer attention as peers hold back” on spending, Frans Hoyer, an analyst at Handelsbanken, said in a note.

“At a time when peers generally have a firm grip of the purse strings, Pandora says that continued advertising spend has enabled it to better catch consumer attention,” Hoyer said.

Pandora’s share price has soared 85% so far in 2020, as CEO Alexander Lacik succeeded in turning around the company’s fortunes after years of disappointing results. Pandora managed to improve its results despite the ongoing pandemic. On average, about 90% of its stores were open last quarter. By the end of the period, that number had risen to 95%, it said.

“Pandora continues to consider the macroeconomic environment and future Covid-19 development as uncertain and unpredictable,” it said.

By Mike Spector and Jessica DiNapoli

NEW YORK (Reuters) – Purdue Pharma LP, the OxyContin maker controlled by members of the wealthy Sackler family, is nearing an agreement to plead guilty to criminal charges as part of a broader deal to resolve U.S. Justice Department probes into its alleged role in fueling the nation’s opioid crisis, six people familiar with the matter said.

Purdue lawyers and federal prosecutors are brokering a plea deal that could be unveiled as soon as within the next two weeks and include billions of dollars of financial penalties, four of the people said. They stressed that talks are fluid and that some of the terms could change as discussions continue.

In addition to the criminal case, U.S. prosecutors are negotiating a settlement of civil claims also carrying a financial penalty that allege unlawful conduct in Purdue’s handling of prescription painkillers, they said.

The Stamford, Connecticut-based company is expected to face penalties exceeding $8 billion. They consist of a roughly $3.54 billion criminal fine, $2 billion criminal forfeiture and $2.8 billion civil penalty, some of the people familiar with the negotiations said.

They are unlikely to be paid in the near term as the criminal fine and civil penalty are expected to be considered alongside other claims in Purdue’s bankruptcy proceedings and the company lacks necessary funds to fully repay all creditors.

The tentative agreement would draw a line under Purdue’s criminal exposure for what prosecutors and state attorneys general have described as aggressive marketing of a highly-addictive painkiller that minimized the drug’s potential for abuse and overdosing.

Over the years, Purdue reaped billions of dollars in profits from its opioids, enriching Sackler family members and funneling illegal kickbacks to doctors and pharmacies, federal prosecutors and state attorneys general have alleged. The company now faces thousands