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NEW YORK — According to published reports in Seeking Alpha, Rite Aid has postponed a key court hearing related to its reorganization plan, noting that it requires additional time to include creditor agreements in its legal documents.
“We need a little bit more time,” Bloomberg News reported, quoting Rite Aid’s attorney Aparna Yenamandra as saying during a court hearing on Thursday. Previously, the company intended to seek final court approval for its Chapter 11 reorganization by April 22.
A new date for the hearing hasn’t yet been scheduled. Instead, U.S. Bankruptcy Judge Michael Kaplan will schedule a status conference on the reorganization.
In March, the company agreed with its financial stakeholders, including creditor groups and pharma distributor McKesson, to complete its bankruptcy process by April. Creditors who have sued Rite Aid over its role in the opioid crisis didn’t oppose the deal.
However, early this week, some of the claimants pushed back against the company’s proposal to include an employment guarantee for its CEO, which they said would lead to a $20M payout when Rite Aid exits bankruptcy.
