Reorganizations (Tables)

9 Months Ended

Sep. 29, 2023

Non-debtor entity intercompany balances from/due to the 2023 Debtors as of September 29, 2023 (Successor) was as follows:




Intercompany receivables	$	25.9
Intercompany payables	190.7

Schedule of Liabilities Subject to Compromise

Liabilities subject to compromise at the end of the period consisted of the following:


	Successor
	September 29, 2023
Accrued interest (1)	$	159.0
Debt (2)	3,512.0

Acthar Gel-Related Settlement (3)	236.1

Opioid-Related Litigation Settlement (4)	1,025.0
Total liabilities subject to compromise	$	4,932.1

(1)Accrued interest includes $14.9 million and $108.9 million related to makewhole settlement allowed claims with the 2025 and 2028 first lien senior secured noteholders, respectively, prescribed for per the RSA and 2023 Plan.

(2)The Company expensed $377.6 million to adjust the carrying value up to the principal value or estimated allowed claim amount and recorded the expense within in reorganization items, net in the unaudited condensed consolidated statement of operations for the three months ended September 29, 2023 (Successor).

(3)The Company expensed $145.0 million as reorganization items, net to adjust the present value of the Acthar Gel-Related Settlement liability to its estimated allowed claim amount during the three months ended September 29, 2023 (Successor). This settlement obligation is listed as unimpaired in the 2023 Plan, but is classified as LSTC in accordance with ASC 852 given it is unsecured and its ultimate treatment is dependent upon the effectuation of the 2023 Plan.

(4)The Company expensed $598.4 million as reorganization items, net to adjust the present value of the Opioid-Related Litigation Settlement liability to its estimated allowed claim amount during the three months ended September 29, 2023 (Successor). This settlement obligation is classified as LSTC in accordance with ASC 852 given it is unsecured and its ultimate permanent elimination is dependent upon the effectuation of the 2023 Plan. Refer to Note 12 for further information.

Schedule of Debtor Reorganization Items, net

Reorganization items, net, were comprised of the following:


	Successor
	Three Months Ended September 29, 2023		Three Months Ended September 30, 2022
Professional fees	$	17.4	$	14.2

Debt valuation adjustments	426.9		—
Adjustments of other claims	867.2		—
Total reorganization items, net	$	1,311.5	$	14.2


	Successor				Predecessor
	Nine Months Ended September 29, 2023		Period from June 17, 2022 through September 30, 2022		Period from January 1, 2022 through June 16, 2022
Gain on settlements of LSTC	$	—	$	—	$	(943.7)
Loss on fresh-start adjustments	—		—		1,354.6
Professional and other service provider fees	27.0		17.7		161.1
Success fees for professional service providers	—		—		44.3
Write off of prepaid premium for directors' and officers' insurance policies	—		—		9.2
Debt valuation adjustments	426.9		—		—
Adjustments of other claims	867.2		—		5.4
Total reorganization items, net	$	1,321.1	$	17.7	$	630.9