Revlon rises from bankruptcy with $2.7B debt wiped clean
Cosmetics giant Revlon, burdened by debt and inventory shortages, filed for bankruptcy in June 2022. Now, after a lengthy restructuring process, the company is set to emerge from Chapter 11 protection in late April, with its old lenders taking the reins as new owners.
Revlon's journey through bankruptcy has seen a significant reduction in its debt load. The company will shed over $2.7 billion in debt and secure $285 million in fresh liquidity, thanks to a reorganization plan approved by the U.S. Bankruptcy Court. This plan, a critical milestone, simplifies Revlon's capital structure and sets it up for a fresh start.
The new shareholders of Revlon include prominent creditors such as UBS O'Connor LLC, Franklin Advisers, Alleghany Capital Corporation, and MacAndrews & Forbes Holdings Inc. Despite the challenges ahead, Revlon's strong brand names and increased liquidity should enable it to continue competing in the market.
Revlon's emergence from bankruptcy, with about $1.5 billion in debt remaining, will be followed by a crucial task: turning its fortunes around in a tough economic environment. Debra Perelman will continue as CEO, steering the company through this phase. The company's future depends on its ability to execute a successful turnaround, despite the late bankruptcy filing and the current economic climate.
