Rite Aid Corp, which filed for Chapter 11 bankruptcy on Sunday, said it has received commitments for $3.45 billion in new financing and named a new CEO, as litigation alleges the drugstore chain helped fuel the opioid crisis in the US.
The bankruptcy process will allow Rite Aid to settle litigation claims in an “equitable manner,” the company said.
Rite Aid has appointed Jeffrey Stein as its new CEO and chief restructuring officer, replacing interim CEO Elizabeth Burr.
Stein has been appointed to the company’s board of directors and Burr will also remain a board member, he said.
Rite Aid will close more of its underperforming stores and will move employees at affected stores to other locations if possible, the company said, without providing further details.
The company operates more than 2,000 grocery stores in 17 states in the US, although it is much smaller than its competitors such as Walgreens Boots Alliance and CVS Health.
The bankruptcy process will allow Rite Aid to resolve litigation claims in an “equitable manner,” the company said.REUTERS
Rite Aid has also reached an agreement in principle with several of its senior secured noteholders that will significantly reduce its debt.
The company entered into an agreement with MedImpact Healthcare Systems, where the independent pharmacy benefit solutions firm will acquire the company’s Elixir Solutions business.
MedImpact will act as a ‘stalking horse bidder’ in the court-supervised sale process, Rite Aid said.
Rite Aid listed estimated assets and liabilities in the range of $1 billion to $10 billion in court filings with the US Bankruptcy Court for the District of New Jersey.
Aside from opioid lawsuit liabilities, the pharmacy chain was struggling with $8.6 billion in total debt as of June 3, according to legal filings, some of which will be repaid in 2025.
Rite Aid also listed total assets of $7.65 billion in court filings.
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Source: thtrangdai.edu.vn/en/
