Rite Aid has said the settlements and broader restructuring plan keeps open critical neighborhood pharmacies and will save thousands of jobs.

A U.S. bankruptcy judge on Friday approved Rite Aid's restructuring plan, allowing the pharmacy chain to cut $2 billion in debt and turn over control of the company to a group of its lenders.U.S. Bankruptcy Judge Michael Kaplan approved Rite Aid's bankruptcy plan at a court hearing in Trenton,

The restructuring plan is aimed at preventing Rite Aid from liquidation by handing control of the business to key creditors.

Rite Aid’s restructuring plan has been approved, according to multiple reports. U.S. Bankruptcy Judge Michael Kaplan approved Rite Aid’s bankruptcy plan last week at a court hearing in Trenton, New Jersey, allowing the pharmacy chain to cut $2 billion in debt and turn over control of the company to a group of its lenders, according to CNBC.

If approved, Rite Aid would emerge from Chapter 11 under the ownership of lenders including Brigade Capital and HG Vora.

US drugstore chain Rite Aid is seeking approval for its bankruptcy restructuring plan, aiming to reduce its debt by $2bn. The plan would transfer company control to a group of lenders. In a court filing, the company stated that the restructuring is the optimal path to repay its creditors and successfully exit bankruptcy.

Rite Aid Corp. has been cleared to exit bankruptcy after winning court approval on a restructuring plan that’s poised to save the ailing pharmacy chain from liquidation by handing control of the business to key creditors.