Rite Aid bankruptcy plan approved, cutting $2 bln in debt (updated)

Rite Aid

28/06/2024 19:17

(Adds detail from court hearing in paragraphs 2-4)
    By Dietrich Knauth
       NEW YORK, June 28 (Reuters) - A U.S. bankruptcy judge on
Friday approved Rite Aid's restructuring plan, allowing the
pharmacy chain to cut $2 billion in debt and turn over control
of the company to a group of its lenders.
        U.S. Bankruptcy Judge Michael Kaplan approved Rite Aid's
bankruptcy plan at a court hearing in Trenton, New Jersey,
saying that the restructuring had saved the company from having
to shut down and liquidate operations. 
  
        Rite Aid used its bankruptcy to close hundreds of
stores, sell its pharmacy benefit company Elixir, and negotiate
settlements with its lenders, drug distribution partner McKesson
and other creditors, including individuals and governments that
have sued it for allegedly contributing to the deadly U.S.
opioid epidemic.
  
        Rite Aid, which had over 2,000 stores when it filed for
bankruptcy in October, will emerge from bankruptcy with about
1,300 remaining locations. 
  


 (Reporting by Dietrich Knauth
Editing by Chris Reese and Leslie Adler)
 ((Dietrich.Knauth@thomsonreuters.com;))