A US court has approved a plan to reorganize Revlon Inc, which would allow the cosmetics maker to reduce its debt by $2.7 billion and exit bankruptcy by the end of April. writes about it BoF.
Bankruptcy Judge David Jones said Revlon had reached a “multilateral settlement with great difficulty”. He said he had resolved “a number of business-threatening” risks to the business, including “strenuous” litigation between creditors.
According to the plan, Revlon’s creditors would take ownership of the company in exchange for a debt reduction deal that would wipe out the value of the stock. The restructured company plans to raise $670 million by selling new shares after coming out of bankruptcy.
Revlon’s restructuring was supported by 88% of the 4,500 creditors who voted for the restructuring plan.
Revlon says this will give the company a “fresh start” and lay a solid foundation for future growth.
Revlon filed for bankruptcy in June, saying $3.5 billion in debt and pandemic-related business disruptions has left the company short of cash to make timely payments to critical suppliers.
Formerly socialbites.ca knowledgeableL’Oréal has acquired Australian luxury beauty brand Aesop for $2.5 billion.