Rite Aid Corp.’s stock tumbled 13% Tuesday to a record low, amid concerns prompted by a Bloomberg report last week that the company is working with banks and lawyers to reorganize its debt.
The... Rite Aid Corp.’s stock tumbled 13% Tuesday to a record low, amid concerns prompted by a Bloomberg report last week that the company is working with banks and lawyers to reorganize its debt. The stock fell about 5% on Monday, “as we find it hard to envision a scenario where the company’s debt gets reworked and equity holders emerge from the process unscathed,” they wrote in a note to clients on Tuesday.
The company’s Elixir pharmacy benefits management company, acquired in 2015 for about $2 billion, is taking longer than expected to reverse membership losses., said the note.script files could be worth $1.7 billion to $2.0 billion, with the PBM fetching perhaps $1.0 billion-$1.1 billion, versus RAD’s $2.9 billion in debt and current ~$100 million in equity value,” said the note.