Revlon Inc’s bankruptcy attorneys revealed in court last week that the cosmetics company is welcoming acquisition bids and exploring other potential opportunities to exit from Chapter 11.
According to Revlon’s attorney Paul Basta, the company is also seeking to stabilize its relationship with vendors and complete a long-term business plan as it looks to move to the next stage of its bankruptcy.
That being said, the beauty company’s junior creditors are arguing that if Revlon rushes to sell itself before the 2022 holiday season, it would only benefit senior lenders, who, as part of Revlon’s $1.4 billion bankruptcy loan, forced the company to accept unrealistic deadlines.
Robert Stark, a lawyer for the junior creditors, stated that the court-approved loan mandates that Revlon and its lenders reach a bankruptcy restructuring agreement by mid-November 2022.
Stark argued that this requirement does not leave enough time for stakeholders to review Revlon’s new business plan or offer a realistic rehabilitation plan.
“We have a very big and complicated mess on our hands,” Stark said. “It is not going to get done in two weeks.”
Basta, on the other hand, pointed out that quickly exiting bankruptcy is “of paramount importance” because of the company’s high fees.
Revlon has until January 19, 2023, to propose a bankruptcy plan.