Cosmetics giant Revlon
They anticipate on obtaining $575 million in protection, which will ultimately help them with supporting daily functioning of their business. This particular bankruptcy marks a challenging period of time for Revlon, which is currently owned by Ron Perelman's MacAndrews & Forbes, given that they endured a good deal of difficulties throughout the Covid-19 pandemic and only continued to worsen in condition since.
Revlon has stated in court procedures that unpredictability regarding who is able to keep term loans is most likely going to prevent the Chapter 11 process from progressing. "We don't know whether folks are going to want to challenge that transaction," Paul Basta, a bankruptcy lawyer for Revlon, stated during a court hearing. "If this is going to become a dispute, it should be raised immediately and addressed so it doesn't become a drain on the estate."
According to David Silverman, retail senior director at at Fitch Ratings, Revlon could be utilizing their time in bankruptcy hearings in order to strengthen their diverse collection of various brands.
"If executed effectively, Revlon could emerge from bankruptcy with a cleaner balance sheet and a better operating profile, improving longer term business prospects," Silverman said in a statement.
Despite the fact that Revlon's level of bankruptcy is turning out to be difficult to handle, especially with respect to competition that has arisen among themselves and other brand names (like L'Oreal SA
"Consumer demand for our products remains strong - people love our brands, and we continue to have a healthy market position. But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand," Revlon Chief Executive Officer Debra Perelman commented.
Court papers have revealed that Revlon attempted to gain court protection in the Southern District of New York, and their assets amounted to $2.3 billion since April. Debts also accumulated to $3.7 billion.
