Mallinckrodt Goes Bankrupt Amid Debt-Cut Plan, Opioid Deal (1)

Mallinckrodt Plc went bankrupt for the second time in less than three years, with plans to dramatically cut its debt load and reduce a sweeping opioid settlement.

The 156-year-old company filed for Chapter 11 in Delaware on Monday, listing assets and liabilities of between $1 billion to $10 billion each. The company had earlier disclosed plans to file for bankruptcy again.

Under a proposed restructuring deal, Mallinckrodt plans to give opioid victims a final $250 million one-time payment — a move that would leave them with $1 billion less than they were promised just last year. The proposal would also ...