U.S. drugmaker Mallinckrodt plans to file for bankruptcy protection

(Reuters) – Mallinckrodt (OTC:) is planning to start bankruptcy proceedings in the coming days, the U.S. drugmaker said on Wednesday, as it struggles to make required settlement payments for lawsuits alleging that it helped fuel the U.S. opioid crisis.

The company has entered into a restructuring agreement, which will help it to reduce its total debt by about $1.9 billion.

One of the biggest manufacturers of opioid drugs, the company had emerged out of bankruptcy in 2022.