Rite Aid Averts Total Closure, Wins Restructuring Plan Approval

Rite Aid Corp. has been cleared to exit bankruptcy after winning court approval on a restructuring plan that’s poised to save the ailing pharmacy chain from liquidation by handing control of the business to key creditors.

Judge Michael Kaplan said Friday he’d approve a restructuring deal that cuts about $2 billion in debt and gives the pharmacy access to about $2.5 billion in exit financing to fund a turnaround plan its advisers have dubbed “Rite Aid 2.0.”

The deal also includes a series of settlements resolving investigations by federal authorities and more than 1,000 civil lawsuits related to opioid prescriptions ...