RAD - Rite Aid dips amid report it's considering bankruptcy to address opioid liabilities
2023-07-10 17:05:49 ET
Rite Aid (RAD ) ticked lower by 2% amid a report that the drugstore chain is considering a Chapter 11 filing to address liabilities related to its opioid exposure.
A bankruptcy filing hasn't been decided and isn't imminent, according to a Reorg report and a tweet from the reporter on the story, which cited unidentified sources.
Rite Aid ( NYSE: RAD ) didn't immediately respond to Reorg and Seeking Alpha request for comment.
The report comes after Bloomberg said last month that a group of secured bondholders was working with advisers ahead of possible talks with the drugstore chain to rework its debt. Some investors are evaluating plans to provide cash to Rite Aid ( RAD ) as part of a so-called "liability management deal" to aid the the company in paying what it owes as it deals with its $2.9 billion in debt, some of which is due in 2025 and 2026.
Rite Aid's CFO said late last month on the company's Q1 earnings calls that the company has an open dialogue with its lenders and is continuing to evaluate several options for addressing its 2025 debt maturities.
More on Rite Aid
- Rite Aid May Be Forced Into Ch.11 Bankruptcy To Resolve Opioid Liabilities
- Rite Aid Q1 Earnings Preview: Bears Remain In Control
- Rite Aid Non-GAAP EPS of -$0.73 beats by $0.84, revenue of $5.65B beats by $420M
- Rite Aid falls in wake of Walgreens' lowered guidance
For further details see:
Rite Aid dips amid report it's considering bankruptcy to address opioid liabilities