# Revlon emerges from bankruptcy after lender takeover
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-03
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Revlon emerges from bankruptcy, stronger and ready for
Meta Description: Revlon emerges stronger after bankruptcy, offering iconic beauty products loved for decades. See how the company is positioned for long-term growth.
URL: https://financedigest.com/revlon-emerges-from-bankruptcy-after-lender-takeoverhtml

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# Revlon emerges from bankruptcy after lender takeover

By Dietrich Knauth

(Reuters) -Revlon Inc said on Tuesday that it has emerged from bankruptcy after cutting more than $2.7 billion in debt and handing control of the beauty products company to its lenders.

CEO Debra Perelman said in a statement that Revlon is stronger after bankruptcy and well positioned for long-term growth.

We look forward to unlocking the [full potential](https://www.financedigest.com/embedded-finance-is-the-new-norm-in-banking-but-what-is-needed-to-unleash-its-full-potential.html "Embedded finance is the new ‘norm’ in banking, but what is needed to unleash its full potential? ") of our globally recognized brands and continuing to offer our customers the iconic products they have loved for decades,” Perelman said.

Revlon, which has a 91-year history selling lipstick, nail polish and other beauty products, filed for bankruptcy in June, [saying its $3.5 billion debt](https://www.financedigest.com/green-debt-swaps-firmly-on-the-agenda-says-new-planet-tracker-report.html "Green debt swaps firmly on the agenda, says new Planet Tracker report") load and pandemic-related disruptions had left it too cash-poor to make timely payments to critical vendors in its cosmetics supply chain.

Revlon has filled its post-bankruptcy [board of directors with experienced executives](https://www.financedigest.com/x-google-executive-to-join-numerous-board.html "x-Google executive to join Numerous board") from the consumer, retail, and beauty industries, including former Bloomin’ Brands CEO Elizabeth Smith and former Sephora CEO Martin Brok.

Revlon’s lenders took ownership of the [company in exchange for the debt reduction agreement](https://www.financedigest.com/french-unions-unanimously-sign-wage-agreement-with-edf-company-says.html "French unions unanimously sign wage agreement with EDF, company says"), wiping out the equity value of existing shareholders.

The company’s largest shareholder was MacAndrews & Forbes, which is owned by Perelman’s father Ron Perelman. MacAndrew & Forbes held 85% of the company’s shares at the time of its bankruptcy filing, and the remaining [stock saw a surge](https://www.financedigest.com/stocks-on-worst-run-in-18-months-amid-global-covid-19-surge.html "Stocks on worst run in 18-months amid global COVID-19 surge") in interest from retail investors last year before collapsing in value.

Revlon’s new owners include Glendon [Capital Management](https://www.financedigest.com/social-and-sustainable-capital-sasc-boosts-investment-team-with-three-new-investment-managers-hermina-popa-toyin-ogundana-and-krishna-chokshi.html "Social and Sustainable Capital (SASC) boosts investment team with three new investment managers – Hermina Popa, Toyin Ogundana and Krishna Chokshi"), King Street Capital Management, Angelo Gordon & Co, and Oak Hill Advisors.

King Street Capital Managing Director Noah Charney said the new owners were proud to “serve as stewards” of a “storied [American business.”](https://www.financedigest.com/coronavirus-how-american-business-have-adapted-to-the-new-normal.html "Coronavirus: How American Business Have Adapted to the New Normal")

The company, which has changed its corporate name to Revlon Group Holdings, said it exited from [bankruptcy with $1.5 billion](https://www.financedigest.com/cineworld-gets-us-court-approval-to-raise-2-26-billion-after-bankruptcy.html "Cineworld gets US court approval to raise .26 billion after bankruptcy") in debt and $236 million in available liquidity. It previously announced plans to raise $670 million by [selling new equity shares](https://www.financedigest.com/itv-shares-jump-on-reports-it-could-sell-stake-in-production-arm.html "ITV shares jump on reports it could sell stake in production arm") after its bankruptcy.

Revlon reported $490 million in net [sales for the first quarter](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite"), up year on year from $479.6 million.

(Reporting by Dietrich Knauth in New York and Nandhini Srinivasan in BengaluruEditing by Marguerita Choy)


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