Rite Aid Corporation (OTC: RADCQ) (“Rite Aid” or the “Company”) has announced that it has obtained approvals from the U.S. Bankruptcy Court for the District of New Jersey for its initial motions associated with the voluntary Chapter 11 petitions submitted on October 15, 2023.
The Court has granted provisional authorization for the Company to access a debtor-in-possession financing facility of up to $3.45 billion provided by certain lenders. This financial support is anticipated to supply the necessary funds to sustain the Company during the restructuring process. Among its directives, the Court has sanctioned the continuation of wage, salary, and benefit payments to associates without any disruptions, the full settlement of outstanding invoices to vendors and suppliers for goods and services delivered on or after the filing date of October 15, 2023, and the ongoing provision of high-quality healthcare products and services across its retail and online platforms.
Rite Aid Corporation (NYSE: RAD) (“Rite Aid” or the “Company”) made a significant announcement today, revealing that its Board of Directors has promptly designated Jeffrey S. Stein as the Chief Executive Officer (CEO), Chief Restructuring Officer (CRO), and as a new member of the Board of Directors, with immediate effect. Mr. Stein takes over these roles from Elizabeth (“Busy”) Burr, who has been serving as the Interim CEO of Rite Aid since January 2023. Ms. Burr will maintain her position as a member of the Company’s Board.
“We are pleased to have received Court approval of these critical First Day motions, which will enable Rite Aid to continue serving our customers and meeting their pharmacy needs throughout this process,” said Jeffrey S. Stein, Chief Executive Officer and Chief Restructuring Officer of Rite Aid. “With the support of certain of our lenders and the majority of our bondholders, we look forward to moving through this process and emerging as a stronger company, well-positioned for long-term success. We thank our associates, partners, suppliers and vendors for their continued support and our associates for their hard work and dedication.”
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