Revco Drug Store

Revco Drug Store filed for bankruptcy in July of 1988 and was one of the largest bankruptcies in US financial history as well as being
one of the largest leveraged buyouts. As recently as 1984, Revco was operating approximately 2,000 stores in 30 states and was
taken private in a leveraged buyout in 1986 which lead to a significant increase in Revco‘s debts from $44.7 million in 1985 to over
$700 million in 1986 after the leveraged buyout. Eventually, its debt reached 31.3 billion and Revco announced that it could no longer
make the interest payments on its debts. Using the basic background information already provided conduct more extensive research
about the Revco bankruptcy on ProQuest and write a plan for the firm’s bankruptcy. Be sure to address issues such as whether it
would be better for Revco to file for formal bankruptcy instead of private restructuring, what the costs of the Revco bankruptcy will be,
and how long you expect before Revco will emerge from bankruptcy

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