Rite Aid Completes Restructuring Process and Emerges from Chapter 11
Rite Aid has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy. The company has eliminated approximately $2.0 billion of total debt and received $2.5 billion in exit financing. Rite Aid will now operate as a private company, with ownership transitioning to certain creditors and all existing common shares cancelled.
The restructuring has resulted in a rightsized store footprint, a more efficient operating model, and additional financial resources. Matt Schroeder, former CFO, has been appointed as the new Chief Executive Officer, succeeding Jeffrey S. Stein, who led the Chapter 11 process.
Rite Aid ha completato con successo la sua ristrutturazione finanziaria ed è emersa dal capitolo 11 della bancarotta. L'azienda ha eliminato circa 2,0 miliardi di dollari di debito totale e ha ricevuto 2,5 miliardi di dollari in finanziamenti di uscita. Rite Aid opererà ora come una società privata, con la proprietà che passa a determinati creditori e tutte le azioni ordinarie esistenti cancellate.
La ristrutturazione ha portato a un dimensionamento corretto della rete di negozi, a un modello operativo più efficiente e a ulteriori risorse finanziarie. Matt Schroeder, ex CFO, è stato nominato nuovo Amministratore Delegato, succedendo a Jeffrey S. Stein, che ha guidato il processo del capitolo 11.
Rite Aid ha completado con éxito su reestructuración financiera y ha salido de la bancarrota bajo el capítulo 11. La empresa ha eliminado aproximadamente $2.0 mil millones de deuda total y ha recibido $2.5 mil millones en financiamiento de salida. Rite Aid ahora operará como una empresa privada, con la propiedad pasando a ciertos acreedores y todas las acciones ordinarias existentes canceladas.
La reestructuración ha resultado en una reducción adecuada de la superficie de las tiendas, un modelo operativo más eficiente y recursos financieros adicionales. Matt Schroeder, ex CFO, ha sido nombrado nuevo Director Ejecutivo, sucediendo a Jeffrey S. Stein, quien lideró el proceso del capítulo 11.
Rite Aid는 재정 구조조정을 성공적으로 완료하고 Chapter 11 파산에서 벗어났습니다. 회사는 약 20억 달러의 총 부채를 삭제하고 25억 달러의 출구 금융을 확보했습니다. Rite Aid는 이제 사기업으로 운영되며, 소유권이 일부 채권자에게 이전되고 모든 기존 보통주가 취소됩니다.
이번 구조조정으로 상점의 규모를 적절히 조정했고, 더 효율적인 운영 모델과 추가 재정 자원을 확보했습니다. 이전 CFO인 Matt Schroeder가 새로운 CEO로 임명되었으며, Chapter 11 프로세스를 이끌었던 Jeffrey S. Stein의 뒤를 잇게 되었습니다.
Rite Aid a réussi à terminer sa restructuration financière et est sorti de la faillite sous le chapitre 11. L'entreprise a éliminé environ 2,0 milliards de dollars de sa dette totale et a reçu 2,5 milliards de dollars de financement de sortie. Rite Aid fonctionnera désormais en tant que société privée, avec une propriété transférée à certains créanciers et toutes les actions ordinaires existantes annulées.
La restructuration a abouti à une réduction appropriée du réseau de magasins, un modèle opérationnel plus efficace et des ressources financières supplémentaires. Matt Schroeder, ancien CFO, a été nommé nouveau directeur général, succédant à Jeffrey S. Stein, qui a dirigé le processus du chapitre 11.
Rite Aid hat erfolgreich seine finanzielle Umstrukturierung abgeschlossen und ist aus dem Kapitel 11 der Insolvenz herausgekommen. Das Unternehmen hat etwa 2,0 Milliarden Dollar an Gesamtschulden eliminiert und 2,5 Milliarden Dollar an Austrittsfinanzierung erhalten. Rite Aid wird jetzt als privates Unternehmen tätig sein, wobei das Eigentum an bestimmte Gläubiger übergeht und alle bestehenden Stammaktien annulliert werden.
Die Umstrukturierung hat zu einem angepassten Filialnetz, einem effizienteren Betriebsmodell und zusätzlichen finanziellen Mitteln geführt. Matt Schroeder, ehemaliger CFO, wurde als neuer CEO ernannt und folgt damit Jeffrey S. Stein, der den Prozess des Kapitels 11 geleitet hat.
- Eliminated approximately $2.0 billion of total debt
- Received $2.5 billion in exit financing
- Rightsized store footprint for improved efficiency
- Transition to private company ownership
- Cancellation of all existing common shares
- Transition of ownership to creditors
Moving Forward as a Stronger Company with Focused Portfolio and Enhanced Financial Position
“Emergence is a pivotal moment in Rite Aid’s history, enabling it to move forward as a significantly transformed, stronger and more efficient company,” said Jeffrey S. Stein, Chief Executive Officer and Chief Restructuring Officer. “We are grateful for the ongoing support of our customers, associates and partners, and we look forward to continuing to provide leading pharmacy services designed to improve health and wellness outcomes across the communities we serve. I am excited about Rite Aid’s future as it continues to focus on executing its strategy and delivering for its customers and stakeholders.”
Through this process, Rite Aid has eliminated approximately
In connection with emergence, Rite Aid will operate as a private company. Ownership of the Company transitioned to certain Rite Aid creditors, and all of Rite Aid’s existing common shares were cancelled, pursuant to the Plan of Reorganization.
Separately, Rite Aid today announced that Matt Schroeder, who most recently served as Chief Financial Officer, has been appointed Chief Executive Officer. He succeeds Mr. Stein, who joined the Company as Chief Executive Officer and Chief Restructuring Officer to lead the court-supervised Chapter 11 process.
Kirkland & Ellis LLP served as Rite Aid’s legal advisor, Guggenheim Securities, LLC as investment banker and Alvarez & Marsal as transformation officer and financial advisor to the Company.
About Rite Aid
Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of solutions that offer convenience, including retail and delivery pharmacy, as well as services offered through the Company’s wholly owned subsidiary Bartell Drugs. For more information, please visit www.riteaid.com.
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MEDIA:
Tilda Comstock
(412) 310-1143
press@riteaid.com
Source: Rite Aid Corporation
FAQ
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