Rite Aid Seeking Asset-Based Loan to Fund Itself in Bankruptcy

Rite Aid Corp. is in discussions with Bank of America Corp. for a loan to fund itself during a potential Chapter 11 bankruptcy process, according to people with knowledge of the situation.

Talks for the potential debtor-in-possession financing call for an asset-based loan that would be secured by accounts receivables, inventory and prescription lists, said the people, who asked not to be identified discussing a private matter. Bank of America is the administrative agent for the company’s existing asset-based loan, according to regulatory filings.

The chain is soliciting potential buyers who would bid for parts of business in bankruptcy, ...