Rite Aid Forges Path To Financial Recovery With Major Settlement: Report

Pharmacy chain Rite Aid Corp RADCQ has reportedly reached a pivotal settlement with its lenders, the U.S. Department of Justice, and drug supplier McKesson Corp MCK.

The settlement will pave the way for the conclusion of its bankruptcy case by late April, according to a report from Reuters.

During a bankruptcy court hearing in Trenton, New Jersey, Rite Aid attorney Aparna Yenamandra announced the agreement, emphasizing resolution with all key economic stakeholders. Yenamandra did not delve into specifics, citing ongoing negotiations.

Despite the positive development, Rite Aid’s junior bondholders expressed caution, highlighting remaining unresolved issues, as per the report.

Attorney Andrew Rosenberg underscored the complexity of these matters, representing bondholders such as Brigade Capital Management, HG Vora Capital Management, and J.P. Morgan Investment Management.

Rite Aid plans to address lingering concerns swiftly, aiming to commence the voting process for its bankruptcy plan later this week.

According to the report, U.S. Bankruptcy Judge Michael Kaplan expressed interest in the settlement’s intricacies and scheduled a follow-up court session on Thursday.

The company filed for bankruptcy in October last year to begin implementing a restructuring plan to reduce its debt.

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