Rite Aid Nears Sweeping Creditor Deal to Avoid Liquidation (1)

Rite Aid Corp. is nearing a deal with key bondholders and other creditor groups that will allow the pharmacy chain to avoid a liquidation, according to people with knowledge of the matter.

The deal calls for junior bondholders to take over the struggling pharmacy chain and exit Chapter 11 protection as a going concern, according to the people, who asked not to be identified discussing the private accord. The so-called global settlement would incorporate deals with a committee of tort claimants and its asset-based lenders, the people said.

Rite Aid lawyer Aparna Yenamandra said during a Tuesday court hearing that ...