Mallinckrodt Cleared to Pay More Than $30 Million to Executives

April 5, 2021, 7:50 PM

Bankrupt Mallinckrodt Plc. won approval to pay 12 executives more than $30 million in performance bonuses through two compensation programs, overcoming objections from the drug maker’s junior creditors and the U.S. Trustee.

  • “I find that the plans are fair, reasonable, within market and reflect the appropriate business judgment of the debtors,” U.S. Bankruptcy Judge John Dorsey said in a hearing Monday
  • Mallinckrodt’s unsecured creditors objected in part because some of the executives who will receive bonuses have been accused of wrongdoing in lawsuits that helped drive the drug maker into bankruptcy
    • Dorsey said he can’t deny payments based on “mere...

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