Cosmetics maker Revlon files for bankruptcy

(New York) The American manufacturer of nail polish, lipstick and perfume Revlon has placed itself under the American bankruptcy regime by using Chapter 11 proceedings to reduce its debt.

Posted on June 16

In a document filed Wednesday in a New York court, the company said its total debt is between $1 billion and $10 billion. It reported long-term liabilities of $3.3 billion in the first quarter.

The value of its assets is also in the range of $1-10 billion. It was $2.4 billion as of March 31.

In the United States, Chapter 11 recourse is a tool that allows a company that cannot pay its debts to reorganize itself protected from its creditors while continuing current operations.

The bankruptcy filing “will allow Revlon to provide our customers with the iconic products we’ve offered for decades while charting a clearer path for our future growth,” CEO Debra said. Perelman in a statement to the group in New York.

The company said it expects to receive $575 million in financing from its lenders if its bankruptcy is approved by a US court.

Majority-owned by billionaire investor Ronald Perelman through McAndrews & Forbes Holding and run by his daughter, Debra Perelman, Revlon reported a net loss of $67 million from January to March. .

The company, which mainly markets the brands Elizabeth Arden (acquired in 2016), Almay and Britney Spears Fragrances, has operations in more than 150 countries.

Revlon suffered from a supply chain crisis and high inflation.

The group also faces tougher competition, which has weighed on its profits in recent years.

He was at the center of financial news in August 2020 when Citibank revealed that it had “erroneously” transferred $900 million to several creditors of the manufacturer.

The bank filed a complaint against an investment fund that refused to pay part of the amount, but was dismissed by a New York judge.

The action of Revlon, listed on the New York Stock Exchange, was suspended Thursday morning in electronic trading before the opening of Wall Street.

The stock rose more than 20% during its suspension.

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