As it moves to its next phase of the business, Rite Aid Corp. announced that it has emerged from Chapter 11 bankruptcy protection and appointed Matt Schroeder CEO.
Rite Aid declared bankruptcy in October of last year. With the emergence, Rite Aid will operate as a private company owned by select creditors, with existing common shares canceled pursuant to the plan of reorganization, the company stated. Rite Aid did not identify the acquiring creditors in its public announcement of the transaction.
Rite Aid noted that, through the Chapter 11 process, it has eliminated $2 billion of total debt. In addition, the company received $2.5 billion in exit financing to support the business as it moves forward.
Schroeder joined Rite Aid in 2000 and most recently served as the company’s CFO, the company maintained. He succeeds Jeffrey Stein, who has stepped down as CEO and chief restructuring officer with the company’s emergence from Chapter 11. Before he joined Rite Aid, Schroeder was an account manager at Arthur Andersen LLP.
