 Shares of Mallinckrodt PLC plunged 25 in premrket trading Tuesday, reversing an earlier gain, after the specialty pharmaceutical company swung to a large net loss, but reported an adjusted profit that beat expectations, while disclosing talks with creditors and litigation claimants regarding the possibility of a bankruptcy filing. The company reported a net loss of 933.1 million, or 11.04 a share, after net income of 6.8 million, or 8 cents a share, in the year-ago period. Excluding non-recurring items, such as a one-time Acthar Gel Medicaid rebate liability of 639.7 million, adjusted earnings per share came to 1.89, above the FactSet consensus of 1.34. Net sales fell to 166.5 million from 823.3 million. A one-time Acthar Gel Medicaid liability lowered sales by 534.4 million. In its business and litigation update, the company stated: Due to pressures from the Acthar Gel Medicaid matter, the ongoing opioid litigation and the Companys existing debts and the related risk of non-compliance with its financial debt covenant over the next twelve months, the Company has been working with external advisors to explore a range of options and engage in dialogue with financial creditors and litigation claimants and their advisors, including the possibility of a filing for reorganization in bankruptcy under Chapter 11 by Mallinckrodt PLC and most of its subsidiaries in the near-term. The company said its cash balance at the end of the second quarter was 818.3 million and the revolving credit facility was fully drawn, while total principal debt outstanding was 5.29 billion. The stock has tumbled 31.5 over the past three months through Monday, while the SP 500 has climbed 15.9. 