We have reached an agreement in principle with certain of our financial stakeholders on the terms of a financial restructuring plan that will allow us to accelerate Rite Aid’s ongoing business transformation. Implementing the contemplated restructuring plan will significantly reduce the Company’s debt, increase our financial flexibility and enable us to execute on key initiatives. In connection with this, Rite Aid has initiated a voluntary court-supervised process under Chapter 11 of the U.S. Bankruptcy Code.
As we move through this process, Rite Aid remains focused on providing leading healthcare products and services that improve the health outcomes of the nearly one million customers that we serve daily.
Rite Aid and certain of its subsidiaries filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the District of New Jersey. Elixir Insurance is not included in the court-supervised process.
The court-supervised process provides an orderly and efficient forum for Rite Aid to:
In connection with this process, we have received a commitment for $3.45 billion in debtor-in-possession financing. This financing is expected to provide sufficient liquidity to support the business throughout the court-supervised process.