In order to exit Chapter 11 as soon as possible, Revlon Inc.’s bankruptcy lawyers testified in court on Thursday that the cosmetics company is in contact with potential buyers.
Following the completion of a long-term business plan and the stabilisation of its relationship with suppliers, Revlon’s lawyer Paul Basta informed US Bankruptcy Judge David Jones in Manhattan that the company is prepared to go to the next phase of its bankruptcy.
According to Basta, Revlon is looking into the possibility of selling the business and has started to mail nondisclosure agreements to potential buyers. Prioritizing a sale before the 2022 holiday shopping season, according to Revlon junior creditors, would solely benefit senior lenders who compelled the business to accept arbitrary timeframes as part of Revlon’s $1.4 billion bankruptcy financing, senior lenders claimed in court.
According to Robert Stark, an attorney for the junior creditors, that court-approved loan requires Revlon and its lenders to reach a bankruptcy restructuring agreement by mid-November, which does not give enough time for stakeholders to review Revlon’s new business plan or offer a practical course for rehabilitating the company.
We have a huge, intricate problem on our hands, Stark declared. “It won’t be finished in two weeks.” A rapid bankruptcy departure is “of fundamental importance,” according to Basta, because of the enormous fees the company is paying.
The bankruptcy plan must be formally proposed by Revlon by January 19th.
A 2020 restructure that allowed Revlon to take on additional debt while transferring its brands and intellectual property assets to a new Revlon business will be challenged in court on Monday, according to junior creditors, according to Stark. If the challenge is successful, part of the senior lenders’ control over the company’s bankruptcy restructuring would be reduced.