Rite Aid Receives Court Approval Of "First Day" Motions To Support Business Operations; Secures Interim Approval To Access Up To $3.45B In Debtor-In-Possession Financing
Portfolio Pulse from Benzinga Newsdesk
Rite Aid Corporation has received approval from the U.S. Bankruptcy Court for its 'First Day' motions related to its voluntary Chapter 11 petitions. The court granted interim approval to access up to $3.45 billion in debtor-in-possession financing. Rite Aid also reached an agreement with MedImpact Healthcare Systems to acquire Rite Aid's Elixir Solutions business. The proposed transaction is subject to higher and better offers, court approval, and other customary conditions.
October 17, 2023 | 3:07 pm
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Rite Aid's approval for 'First Day' motions and access to $3.45B debtor-in-possession financing may provide short-term stability. However, the ongoing bankruptcy process and potential sale of Elixir Solutions business to MedImpact could introduce uncertainty.
The court approval and financing provide Rite Aid with the necessary liquidity to continue operations, which is positive. However, the ongoing bankruptcy process and potential sale of a business unit introduce uncertainty, which could impact the stock price.
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