02.24.23
Last year, global beauty company Revlon Inc. filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
Now, the company has moved one step closer to emerging from bankruptcy by reaching a deal with a holdout faction of lenders.
With the latest settlement in place, Revlon now has the support of all of its major creditor groups, thereby removing the largest remaining roadblock to a plan that would allow the cosmetics maker to exit from bankruptcy by April.
The proposal includes cutting its debt by $2.7 billion and reducing annual interest expense by approximately $200 million. Any proposal for Revlon to exit the Chapter 11 bankruptcy process in April requires the approval of creditors and a U.S. bankruptcy court.
The creditors, known in legal filings as the Ad Hoc Group of 2016 Lenders, had sued Revlon over 2020 loans, but has now agreed to accept an 18 percent stake in the restructured Revlon or $56 million in cash.
Now, the company has moved one step closer to emerging from bankruptcy by reaching a deal with a holdout faction of lenders.
With the latest settlement in place, Revlon now has the support of all of its major creditor groups, thereby removing the largest remaining roadblock to a plan that would allow the cosmetics maker to exit from bankruptcy by April.
The proposal includes cutting its debt by $2.7 billion and reducing annual interest expense by approximately $200 million. Any proposal for Revlon to exit the Chapter 11 bankruptcy process in April requires the approval of creditors and a U.S. bankruptcy court.
The creditors, known in legal filings as the Ad Hoc Group of 2016 Lenders, had sued Revlon over 2020 loans, but has now agreed to accept an 18 percent stake in the restructured Revlon or $56 million in cash.
