Bankrupt Revlon Says It Is Entertaining Sale Offers

Revlon Inc’s bankruptcy attorneys said in court on Thursday that the cosmetics company is engaging with possible purchasers as a way to exit from Chapter 11 as quickly as possible.

Revlon attorney Paul Basta told US Bankruptcy Judge David Jones in Manhattan that the company is ready to move onto the next stage of its bankruptcy after stabilising its relationship with vendors and completing a long-term business plan.

Revlon is exploring a possible sale of the company and has begun sending nondisclosure agreements to interested bidders, Basta said. Revlon junior creditors argued in court that rushing toward a sale before the 2022 holiday season would only benefit senior lenders who forced the company to accept unrealistic deadlines as part of Revlon’s $1.4 billion bankruptcy loan.

That court-approved loan requires Revlon and its lenders to reach a bankruptcy restructuring agreement by mid-November, which does not leave enough time for stakeholders to review Revlon’s new business plan or offer a realistic path for rehabilitating the company, according to Robert Stark, a lawyer for the junior creditors.

“We have a very big and complicated mess on our hands,” Stark said. “It is not going to get done in two weeks.”

Basta said that exiting bankruptcy quickly is “of paramount importance” because of the high fees the company is incurring.

Revlon has until Jan. 19 to formally propose the bankruptcy plan.

Junior creditors intend to file a legal challenge on Monday a 2020 restructuring that allowed Revlon to take on more debt while transferring its brands and intellectual property assets to a different Revlon subsidiary, Stark said. If successful, the challenge would remove some of the senior lenders’ influence over the company’s bankruptcy restructuring.

By Dietrich Knauth; Editors: Alessandra Rafferty and Marguerita Choy

Learn more:

What Went Wrong at Revlon

It was a slow decline for the 90-year-old company, which found itself crippled by massive debt, a pandemic, supply chain issues and growing competition from start-up brands changing beauty ideals and culture.

Credit: Source link






Burton launches two collections with Run DMC

Burton announced on Tuesday a partnership with Run DMC introducing two new collections featuring a limited-edition run of snowboards, boots, bindings, outerwear, streetwear,...

The Addiction And Recovery Of Zee Machine, Who Collaborated With Grammy-Winning Musicians On His Debut Pop Album

The Los Angeles-based pop vocalist describes it as a "flamboyant" pop-rock-electronic dream. Recently, I've...

I Tried All Four Good Science Beauty Moisturizers and These Are My Thoughts

I can’t tell you how many moisturizers I’ve tried over the years that didn’t make it past the first day on my...

Baldwin’s daughter recalls being abused as a teenager

The daughter of actor Alec Baldwin admitted that she was abused at...

All the Stars Who Are EGOT Winners

The best in the biz! Only 18 stars to date have earned the most coveted honor in Hollywood: the EGOT. The awe-inspiring acronym is...
en English