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Friday, June 28, 2024

Rite Aid Averts Total Closure, Wins Restructuring Plan Approval

 

  • Restructuring deal hands control of Rite Aid to creditors
  • Pharacy chain closed a quarter of its locations in bankruptcy

Rite Aid Corp. has been cleared to exit bankruptcy after winning court approval on a restructuring plan that’s poised to save the ailing pharmacy chain from liquidation by handing control of the business to key creditors.

Judge Michael Kaplan said Friday he’d approve a restructuring deal that cuts about $2 billion in debt and gives the pharmacy access to about $2.5 billion in exit financing to fund a turnaround plan its advisers have dubbed “Rite Aid 2.0.”

https://www.bloomberg.com/news/articles/2024-06-28/rite-aid-averts-total-closure-wins-restructuring-plan-approval

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