Mallinckrodt to Go Bankrupt for Second Time in Three Years (1)

Mallinckrodt Plc plans to file bankruptcy for the second time in less than three years after battling business declines and struggling to keep up with payments on a $1.7 billion settlement resolving a wave of lawsuits accusing the drugmaker of fueling the US opioid epidemic.

The 156-year-old company plans to file for Chapter 11 protection in Delaware in the coming days, it said in a filing. Mallinckrodt has struck a tentative restructuring deal with creditors including its opioid victim trust and intends to exit this second bankruptcy quickly, according to the filing.

Under the proposed restructuring deal, Mallinckrodt would ...