02:45 PM EDT, 09/03/2024 (MT Newswires) -- Rite Aid said Tuesday that it closed its financial restructuring and emerged from Chapter 11 bankruptcy as a private company.

Under the bankruptcy process, the company shut down hundreds of stores, sold pharmacy benefit unit Elixir and agreed to settlements with drug distribution partner McKesson (MCK), lenders and other creditors, Reuters reported Tuesday.

Rite Aid cleared about $2 billion of debt as part of the process and received nearly $2.5 billion in exit financing, according to the company.

The company's ownership was transferred to certain creditors and all of its common shares were canceled, Rite Aid said.

Additionally, Rite Aid appointed Chief Financial Officer Matt Schroeder as chief executive. Schroeder succeeds Jeffrey Stein, who joined the company as chief executive and chief restructuring officer for the bankruptcy process.

McKesson did not immediately respond to MT Newswires' request for comment.

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