Reported 8 months ago
In a recent ruling, U.S. Bankruptcy Judge Michael Kaplan rejected MedImpact's attempt to reclaim $200 million linked to its purchase of Rite Aid's pharmacy benefit unit, Elixir. The judge stated that MedImpact knowingly acquired Elixir's $200 million debts when it bought the company. This legal dispute had the potential to impact Rite Aid's bankruptcy restructuring plan, which aims to reduce $2 billion in debt and allocate $47.5 million to junior creditors. Rite Aid's bankruptcy was attributed to high debt, revenue decline, intensified competition, and legal issues related to the U.S. opioid crisis.
Source: YAHOO