Drugmaker Mallinckrodt Looks to Bankruptcy , to Avoid Opioid-Related Payouts.<br />Sources claim that Mallinckrodt's board is in <br />negotiations with a group of hedge funds <br />to hand over control of the business through <br />filing for bankruptcy, Fox News reports.<br />Those hedge funds reportedly include <br />Greenwich and Silver Point Capital.<br />The 'Wall Street Journal' was the <br />first to report on the deal on July 26.<br />The drugmaker has proposed to write off approximately <br />$1 billion of the amount it still owes to addiction victims, <br />as well as state and local governments.<br />According to the 'WSJ' report, Mallinckrodt <br />will also make a one-time payment of around <br />$250 million, citing sources familiar with the deal.<br />News of the potential agreement sent shares in <br />the drugmaker up 53.3% in afternoon trading.<br />The drugmaker, one of the largest <br />manufacturers of opioids, previously <br />filed for bankruptcy three years ago.<br />After reaching a $1.7 billion settlement as part <br />of that bankruptcy reorganization, the opioid<br />producer emerged from Chapter 11 in 2022.<br />Fox News reports that the company first announced <br />the possibility of a second bankruptcy in June amid <br />concerns over $200 million in opioid-related payments
