Rite Aid gearing up for confirmation battle


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Rite Aid gearing up for confirmation battle

Cat Corey's avatar
  1. Cat Corey
4 min read

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Rite Aid marches on toward its confirmation hearing, scheduled to commence on 27 June, after notching two wins from Judge Michael Kaplan of the New Jersey bankruptcy court earlier this week.

The recent wins include both a favorable decision in a more than $200m dispute over the calculation of working capital in the APA for the sale of its Elixir business to MedImpact Healthcare Systems, and the defeat of an emergency motion from certain of the company’s insurers that sought to adjourn the confirmation hearing to allow additional time for discovery into issues raised in objections to confirmation.

As was evident from the hearing this week on the insurers’ emergency motion, Rite Aid’s confirmation will not be a walk in the park for the company.

Many objections have been outstanding for months, and argue that the plan is patently unconfirmable, not feasible and not in the best interest of creditors. It is sure to be a hard fought battle for company and objectors, alike.

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