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Rite Aid<\/a> Corp.\u2019s main lenders are demanding a proposed $20 million payout to Chief Executive Officer Jeffrey Stein be reduced before they fund the company\u2019s exit from bankruptcy, according to people with knowledge of the situation.<\/p>\n The pay package is one of the few remaining points of contention in negotiations that began last October when the company filed for Chapter 11, the people said. The pharmacy chain in April\u00a0put off<\/a>\u00a0a key court hearing in order to complete a deal that would cut $2 billion in debt, resolve lawsuits related to opioid prescriptions and end the company\u2019s prolonged stint in bankruptcy.<\/p>\n The pay dispute comes amid broader concerns among creditors over whether the company will have enough liquidity to support its emergence from bankruptcy, Bloomberg\u00a0previously reported<\/a>. Rite Aid has racked up hundreds of millions of dollars in professional expenses since seeking court protection, casting a spotlight on its cash struggles. Lenders have been asking advisers to cut their fees, with some agreeing to do so, the people said. Talks over Stein\u2019s compensation are ongoing, they added.<\/p>\n A representative for Rite Aid declined to comment, while messages left with Stein were not returned.<\/p>\n Stein, who was appointed CEO the day Rite Aid filed for bankruptcy, is also collecting $300,000 in monthly consulting fees, according to court documents. That financial arrangement has also drawn criticism from other committees representing opioid victims.\u00a0<\/p>\n Rite Aid\u2019s restructuring plan calls for creditors to take over the struggling chain and exit bankruptcy protection as a going concern, according to court documents. The company\u2019s legal team last month sought to reassure creditors that the pharmacy chain will survive Chapter 11, saying the company is still working with banks and a key bondholder group on a rescue deal that has taken longer than expected to finalize.<\/p>\n The creditor group recently agreed to inject $75 million in incremental financing to help build up the chain\u2019s cash reserves and support the restructuring, according to\u00a0court documents<\/a>.\u00a0<\/p>\n Stein received a monthly consulting fee\u00a0of $100,000<\/a>\u00a0and a success bonus of $1.25 million when he was named chief restructuring officer for bankrupt financial services firm GWG Holdings Inc., according to a SEC filing from 2022.\u00a0<\/p>\n The company had filed for Chapter 11 protection in April of that year and exited nearly 16 months later.<\/p>\n<\/div>\n\nSubscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n<\/div>\n