Spencer Platt
- Bankrupt drug store chain Rite Aid (OTC:RADCQ) has reached preliminary agreements with its senior bondholders to move ownership to them.
- The Wall Street Journal also reported that Rite Aid will settle several outstanding lawsuits related to its alleged role in the prescription opioid epidemic.
- Under the deal, bondholders would exchange their claims for 90% of the stock in a reorganized company, according to the newspaper. Also, senior lenders would be paid in full in either cash or new loans.
- If granted the green light by a bankruptcy court, the arrangements would shave more than $2B in debt.