Rite Aid Inks Ch. 11 Deal With Key Medicine Supplier
By Hilary Russ · October 17, 2023, 4:04 PM EDT
Rite Aid Corp. struck a tentative deal on Tuesday with its key supplier, McKesson Corp., paving the way for the bankrupt drugstore chain to continue getting $9 billion of medicines annually...
Bankrupt drugstore chain Rite Aid filed for Chapter 11 Oct. 15 with plans to close more retail locations, sell its pharmacy benefits manager business and shed some of its $4 billion of total funded debt. A New Jersey bankruptcy judge in June agreed to approve its Chapter 11 plan to pay $2.6 billion in term and asset-based loans in cash, exchange $1.2 billion in senior notes for equity and set up a recovery fund for some 1,600 opioid claims that includes $43 million in cash and 10% equity in the reorganized company.
Case Number
3:23-bk-18993
Judge
Michael B. Kaplan
Venue
U.S. Bankruptcy Court for the District of New Jersey