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A U.S. bankruptcy judge has approved Rite Aid Corp’s (OTC:RADCQ) restructuring plan, enabling the pharmacy chain to reduce its debt by $2 billion and transfer control to a group of lenders.
Rite Aid filed for Chapter 11 bankruptcy in October 2023, following a fiscal year in which it reported $750 million in losses and $24 billion in revenue.
During the bankruptcy process, Rite Aid closed hundreds of stores, sold its pharmacy benefit company Elixir, and negotiated settlements with lenders, including its drug distribution partner McKesson Corp (NYSE:MCK) and other creditors.
Also Read: Rite Aid Forges Path To Financial Recovery With Major Settlement: Report.
Reuters noted the restructuring saved the company from having to cease operations entirely.
The restructuring plan also allocated $47.5 million to junior creditors, including individuals and local governments that have sued Rite Aid for its alleged role ...