Mallinckrodt Closes In on Plan to Trim Opioid Deal by $1 Billion

Mallinckrodt Plc and its creditors are moving closer to a deal that would provide opioid victims with a $250 million one-time payment, in a move that would leave them with $1 billion less than they were promised last year.

The proposal being discussed would also hand control of the troubled pharmaceutical company to first-lien lenders as part of a second bankruptcy, according to people with knowledge of the situation. Talks are ongoing and plans could change, they added.

Creditors including states, hospitals, tribes, individuals and others hurt by the opioid crisis already received $450 million last year. The payment ...