THE WHAT? Revlon has announced that the US Bankruptcy Court for the Southern District of New York has confirmed its reorganization plan. The plan will see the US make-up manufacturer emerge from bankruptcy at the end of the month.
THE DETAILS Revlon will exit Chapter 11 proceedings with US$285 million of liquidity, funded via an equity rights offering, a new money senior secured credit facility and new asset-based loans. Some US$2.7 billion of debt has been wiped from its balance sheet through the bankruptcy process and US$1.5 billion of debt remains outstanding.
Going forward, Revlon will be a private company, no longer listed on a stock exchange or subject to public company reporting requirements.
THE WHY? Debra Perelman, Revlon’s President and Chief Executive Officer, commented, “The plan confirmation is a critical milestone and positions Revlon to emerge from the restructuring process with a greatly simplified capital structure that will support the business going forward. We know this financial restructuring has been challenging for our employees, vendors and partners, and we thank them all for their support. Our new capital structure and increased liquidity will enable us to continue to animate our brands in the market, and we look forward to the future of Revlon.”