THE WHAT? Revlon creditors have called the company’s bankruptcy a ‘mess’ in a court filing, with the official creditors committee opposing the loan, according to Reuters.
THE DETAILS The filing stated that the bankruptcy filing would give too much power to a coalition of lenders, known as BrandCo Lenders, that hold around half of the US$3.5 billion of debt, at a time of uncertainty for the company and who should control it.
THE WHY? There is said to be uncertainty about whether Revlon’s value exceeds the company’s debt, with the committee arguing that it would be clearer after the company’s 2022 holiday sales.
The committee also stated that the coalition had previously ‘fleeced’ other Revlon creditors in a 2020 transaction.
The committee wrote, “No one today knows what Revlon is worth.” It also proposed that the lender coalition’s proposed financing is an effort to, “seize the company before its value has been determined.”