Source: Reuters
Rite Aid will operate as a private company after it successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy, the U.S. drugstore chain said on Tuesday.
The pharmacy has 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.
Ownership of the company has transitioned to certain Rite Aid creditors, and all of Rite Aid’s existing common shares were canceled, it said.
Rite Aid also said it appointed Chief Financial Officer Matt Schroeder as CEO, succeeding Jeffrey Stein.
The company has eliminated about $2 billion of total debt and received about $2.5 billion in exit financing to support the business going forward, it added.
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