Rite Aid Cites 'Substantial Doubt' It Can Stay In Business
By Yun Park · October 19, 2023, 3:25 PM EDT
Pharmacy chain Rite Aid Corp. says its Chapter 11 bankruptcy filing Sunday has put at risk its ability to continue operating its business — citing in a quarterly report "substantial doubt"...
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