Major U.S. pharmacy chain Rite Aid said Sunday that it has filed for bankruptcy and obtained $3.45 billion in fresh financing as it carries out a restructuring plan while coping with falling sales and opioid-related lawsuits.
In 2022, Rite Aid settled for up to $30 million to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids. It said it had reached an agreement with its creditors on a financial restructuring plan to cut its debt and position itself for future growth and that the bankruptcy filing was part of that process.
The plan will “significantly reduce the company’s debt” while helping to “resolve litigation claims in an equitable manner,” Rite Aid said.
If you ran a corporation, you too could benefit from this, but obviously the minority of people are in that situation, and corporations have lobbied for us to spend immense funds supporting that branch of society. They should just go bankrupt, and instead fund the people who will have lost their job, and directly invest there to get them back onto the market.
3500 million dollars to go “figure it out”. It’s meant for the company to make good by its clients, but we know that’s not what’s going to happen
I’m not sure what you mean by “that kind of socialism”, but rest assured that the $3.5b didn’t come from the government. Rite Aid got the money all by itself, mostly by selling off parts of its own business.
The courts are simply there to make sure Rite Aid doesn’t do anything sneaky with the money before paying off its creditors.
I was talking a out bailouts specifically yeah, so not in this case.
Chapter 11 is to protect against creditors and force them to cooperate, prevent lawsuits and seizing assets. IN EXCHANGE the court promises to make sure the creditors get their share in the end.
Guess how it always ends…