Revlon gets bankruptcy court approval to borrow $375 million

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US-based cosmetics maker and distributor Revlon has won bankruptcy court approval to borrow $375 million to fix supply chain issues.

The move comes after the company recently filed for Chapter 11 bankruptcy, citing disruptions in supply chains and rising costs.

According to a Reuters report, US Bankruptcy Judge David Jones in New York approved the loan to help Revlon deliver retail customer orders.

The company’s director of restructuring, Robert Caruso, testified in court that several of its raw material suppliers had suspended shipments, demanding payment settlements.

Caruso said the company would not be able to meet demands without access to raw materials.

He added that Revlon will retain $300 million of the loan for day-to-day business operations, while the remaining amount will be used to pay debts incurred with foreign subsidiaries that are not part of the bankruptcy.

Revlon previously said it expected to receive $575 million in funding from existing lenders to support day-to-day operations.

Other than its Canadian and UK business units, none of the company’s international subsidiaries are part of the Chapter 11 proceedings.

Announcing the bankruptcy filing, Revlon President and CEO Debra Perelman said, “Consumer demand for our products remains strong – people love our brands and we continue to have a healthy position on the market.

“But our difficult capital structure has limited our ability to manage macro-economic issues in order to meet this demand.

“By addressing these complex legacy debt constraints, we hope to be able to simplify our capital structure and significantly reduce our debt, allowing us to unlock the full potential of our globally recognized brands. “

In another development, Indian conglomerate Reliance Industries is considering acquiring Revlon, according to a report by business channel ET Now.

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