Mallinckrodt bankruptcy plan gains approval from federal court

Prescription opioid maker Mallinckrodt
MNKTQ,
-13.79%
on Tuesday gained federal court approval to erase more than $1 billion of payments intended for people with drug addiction while handing control of the pharmaceutical company to its lenders. The U.S. Bankruptcy Court in Wilmington, Del., okayed a plan that offers the company a path to exit from bankruptcy just months after it filed for chapter 11 protection. Mallinckrodt executives have said the company reached a restructuring deal after extensive outreach from its creditors.