Mallinckrodt to Seek Second Bankruptcy, Slashing $1.9 Billion in Debt

Pharmaceutical company Mallinckrodt PLC has announced plans to file for Chapter 11 bankruptcy for the second time in less than three years as part of a restructuring agreement with its debtholders. The company aims to reduce its debt by approximately $1.9 billion and will make a final payment of $250 million to the Opioid Master Disbursement Trust II to support efforts related to the opioid crisis. Mallinckrodt expects to complete the prepackaged bankruptcy process by the fourth quarter of 2023, while continuing to provide therapies, pay staff, and vendors.