Generics Bulletin

Mallinckrodt Second Bankruptcy Plan Takes Axe To $1.7bn Opioids Fund

Restructuring Plan Would Also Cut $1.9bn From Debt Pile, Creditors Take Control

30 Aug 2023

Just three years after its first, Mallinckrodt has entered into another restructuring support agreement with its debt holders and opioids trust, which will be facilitated by Chapter 11 bankruptcy proceedings in the US.

Bankruptcy_Chapter11 — • Source: Shutterstock

For the second time in three years, Mallinckrodt has filed for Chapter 11 bankruptcy protection in the US, striking in the process a deal with its creditors that will more than halve the $1.7bn the firm had previously agreed to pay to settle claims over its role in the US opioid crisis.

Following Mallinckrodt’s initiation of voluntary prepackaged Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware, the...