Rite Aid Emerges From Chapter 11

Paul, Weiss advised New Rite Aid, LLC, and its affiliates in their chapter 11 bankruptcy cases, including their successful chapter 11 plan of reorganization. The U.S. Bankruptcy Court for the District of New Jersey approved the plan in November after a fully contested confirmation process, resolving or otherwise overruling all outstanding objections.

Rite Aid, one of the largest U.S. pharmacy retailers, filed its chapter 11 petition in early May, with approximately $2.1 billion in funded debt, and Paul, Weiss advised the company throughout the process to maximize value through a court-supervised sales process while maintaining the continuity of pharmacy-care operations. The debtors subsequently sold substantially all of Rite Aid’s assets, including Rite Aid’s pharmacy assets and the Thrifty Ice Cream business. The confirmed plan incorporates a comprehensive, multi-party global settlement, including resolutions with McKesson Corporation, a large creditor and plan sponsor; Rite Aid’s pre- and post-petition secured lenders; the Department of Justice; and the Pension Benefit Guaranty Corporation.

The Paul, Weiss team included restructuring partners Alice Eaton, Sean Mitchell, Kyle Kimpler, Christopher Hopkins and Andrew Rosenberg, and counsel Douglas Keeton and Sarah Harnett; litigation partners Alison Benedon, William Clareman, Gregory Laufer and Randy Luskey, and counsel Darren Johnson and Robert Kravitz; corporate partner Megan Spelman; tax partner Robert Holo; antitrust partners Scott Sher and Yuni Sobel; executive compensation partner Lawrence Witdorchic; and real estate partner Peter Fisch.