Bankrupt Revlon Says It’s Entertaining Sale Offers

Oct 27 New York (Reuters) – Revlon Inc’s (REVRQ.PK) bankruptcy lawyers said in court on Thursday that the cosmetics company was engaging with potential buyers to exit Chapter 11 as soon as possible .

Revlon attorney Paul Basta told U.S. Bankruptcy Judge David Jones in Manhattan that the company was ready to move to the next stage of its bankruptcy after stabilizing its relationship with suppliers and completing a business plan to long term.

Revlon is investigating a possible sale of the company and has begun sending out nondisclosure agreements to interested bidders, Basta said.

Revlon’s junior creditors argued in court that rushing to a sale before the 2022 holiday season would only benefit senior lenders who forced the company to agree to unrealistic deadlines under Revlon’s bankruptcy loan. $1.4 billion Revlon.

This court-approved loan forces Revlon and its lenders to reach a bankruptcy restructuring agreement by mid-November, which does not allow sufficient time for stakeholders to review Revlon’s new business plan or suggest a realistic path for corporate rehabilitation, according to Robert Stark, an attorney for junior creditors.

“We have a very big, complicated mess on our hands,” Stark said. “It’s not going to be done in two weeks.”

Basta said getting out of bankruptcy quickly is “of paramount importance” because of the high costs the company incurs.

Revlon has until January 19 to formally propose the bankruptcy plan.

Junior creditors intend to file a legal challenge on Monday of a 2020 restructuring that allowed Revlon to take on more debt while transferring its trademarks and intellectual property assets to another Revlon subsidiary, Stark said. . If successful, the challenge would remove some of the senior lenders’ influence over the company’s bankruptcy restructuring.

Reporting by Dietrich Knauth; Editing by Alessandra Rafferty and Marguerita Choy

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