Landscape and nature photographer based in Upstate, New York/iStock Editorial via Getty Images Rite Aid ( OTC:RADCQ ) is close to striking a post-bankruptcy financing deal with a group of lenders despite some outstanding concerns, Reuters reported late Friday, citing comments from the pharmacy retailer's attorneys. The company is approaching a final deal with the lender group and expects to obtain court approval for its Chapter 11 restructuring plan in late June, Rite Aid ( OTC:RADCQ ) attorney Aparna Yenamandra said Friday during a hearing at a bankruptcy court in New Jersey. The Philadelphia, Pennsylvania-based company filed for Chapter 11 bankruptcy in October to restructure its heavy debt load, close underperforming outlets, and resolve claims related to its opioid-related lawsuits.
Yenamandra said the lender group that would take post-bankruptcy ownership plans to inject additional capital while the company is in Chapter 11 and negotiate an exit financing package at the same time. However, there are unresolved issues, including creditor concerns over Rite Aid's ( OTC:RADCQ ) CEO Jeffrey Stein's compensation. More on Rite Aid Shoplifting crackdown: Retail theft ring targeting Macy's, other retailers busted Rite Aid delays major bankruptcy hearing to account for creditor deals Financial information for Rite Aid.
