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Drugstore chain Rite Aid (OTC:RADCQ) announced Tuesday the completion of its financial restructuring process and its emergence from Chapter 11 bankruptcy as a private company under new leadership.
Burdened by billions of dollars in debt, including opioid-related liabilities, the drug retailer filed for Chapter 11 bankruptcy protection in October and named Jeffrey Stein as chief executive. Lead the restructuring process.
“Emergence is a pivotal moment in Rite Aid’s history that will allow it to move forward as a significantly transformed, stronger and more efficient company,” Stein said.
Rite Aid (OTC:RADCQ) has eliminated nearly $2 billion of debt and received $2.5 billion in exit financing as part of its restructuring. Rite Aid (OTC:RADCQ) creditors have assumed ownership and the company's common stock has been cancelled as it begins to operate as a private company.
Matt Schroeder, who most recently served as the company's chief financial officer, will become its new chief executive, succeeding Stein.
“Thanks to the dedication of the entire organization, we are entering our next phase as a transformed company,” Schroeder added.
