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Mallinckrodt’s $1.75 Billion Opioid Plan in Effect During Appeal

April 4, 2022, 5:18 PM

Opioid manufacturer Mallinckrodt Plc’s $1.75 billion Chapter 11 bankruptcy plan will go forward while the courts hash out appeals from its confirmation.

Pharmaceutical company Sanofi-Aventis U.S. LLC—one of Mallinckrodt’s creditors—and a group of insurance companies that includes Attestor Ltd. and Humana Inc. had asked to put the plan on hold while they appealed. Under the plan, initially approved in February, Mallinckrodt agreed to pay $125 million more than originally proposed and hand the company over to creditors.

Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware April 1 denied the insurance companies’ and creditor’s bid ...