Rite Aid Seeks to Reassure Creditors it Will Survive Chapter 11

Rite Aid Corp.’s legal team sought to reassure creditors that the bankrupt pharmacy chain will survive Chapter 11, saying the company is still working with banks and a key bondholder group on a rescue deal that has taken longer than expected to finalize.

A bondholder group slated to take the keys to the company is expected to inject new cash into the business while banks have agreed in principle to economic terms for exit financing, Rite Aid lawyer Aparna Yenamandra said Friday during a hearing in New Jersey. Advisers are working to marry the two funding sources, a process ...