Delaware judge approves Mallinckrodt’s second bankruptcy plan since 2020

A Delaware fed­er­al bank­rupt­cy judge has ap­proved Mallinck­rodt’s re­or­ga­ni­za­tion plan, elim­i­nat­ing near­ly $2 bil­lion in debt and al­low­ing the com­pa­ny to ex­it its sec­ond bank­rupt­cy in three years.

The 150-plus-year-old Irish drug­mak­er first filed for bank­rupt­cy in 2020 un­der a moun­tain of opi­oid law­suits and lit­i­ga­tion around its top-sell­ing mul­ti­ple scle­ro­sis drug Ac­thar Gel. It made an ini­tial $450 mil­lion pay­ment to­ward an opi­oid set­tle­ment when it emerged from bank­rupt­cy in 2022, and will make an­oth­er pay­ment of $250 mil­lion as part of its lat­est re­struc­tur­ing plan.

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