Rite Aid files for bankruptcy, reaches agreement on restructuring with creditors
Rite Aid Corporation (NYSE:RAD) said it has reached an agreement in principle with some senior secured noteholders on terms of a financial restructuring plan.
The company filed for Chapter 11 bankruptcy on Sunday.
Rite Aid has received a commitment for $3.45 billion in new financing to support business operations, and announced the acquisition of Rite Aid’s Elixir Solutions business by MedImpact Healthcare Systems, serving as the stalking horse bidder in a court-supervised sale process.
The deal is subject to higher and better offers, court approval, and other customary conditions. Elixir Insurance is not included in Rite Aid’s Chapter 11 process or proposed deal with MedImpact.
A new CEO and Chief Restructuring Officer has been named, replacing interim CEO Elizabeth Burr, who will continue in her role as a board director.
The pharmacy chain had a total debt of $8.60B as of June 3.
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