Revlon to Emerge from Bankruptcy with $2.7 billion Debt Elimination
- Chaileedo Press
- Apr 6, 2023
- 2 min read
Updated: Apr 6, 2023
Revlon received restructuring approval and is expected to emerge from bankruptcy with approximately $285 million of liquidity. Upon its emergence from bankruptcy，Revlon will be delisted from New York Stock Exchange.
Revlon announced that the company’s plan of reorganization has been confirmed by the United States Bankruptcy Court for the Southern District of New York. Revlon said the company is to emerge from bankruptcy in late April, which is consistent with the timeline announced at the beginning of the restructuring.
Revlon said the company is expected to emerge with approximately $285 million of liquidity, to be funded through an equity rights offering, a new money senior secured credit facility, and new asset based loans. Upon its emergence from bankruptcy, more than $2.7 billion in debt will be reduced from its balance sheet, with approximately $1.5 billion of debt outstanding.
Under the terms of the Plan, Revlon will emerge as a private company and will delist from New York Stock Exchange (NYSE) or subject to public company reporting requirements. The majority of the company’s equity will be owned by its former lenders.
In 20th Oct 2022, NYSE announced that NYSE Regulation has determined to suspend trading in the Class A Common Stock of Revlon from NYSE. Trading in the Company’s Class A Common Stock was suspended after the market close on the NYSE on 20th Oct 2022.
“The plan confirmation is a critical milestone, and positions Revlon to emerge from the restructuring process with a greatly simplified capital structure that will support the business going forward,” said Debra Perelman, Revlon's President and Chief Executive Officer. “We know this financial restructuring has been challenging for our employees, vendors and partners, and we thank them all for their support. Our new capital structure and increased liquidity will enable us to continue to animate our brands in the market and we look forward to the future of Revlon.”
The 91-year-old US cosmetics maker declared bankruptcy in June 2022. Revlon said global supply chain disruptions, vendors demanding upfront payments, inflation as well as labor shortages led to a decline in the performance of the company. Moreover, Covid-19 pandemic has also impacted delivery times, increasing the cost of shipping freight. Lockdowns in Shanghai, China and the Russia-Ukraine conflict have contributed to additional supply chain disruptions.
In fiscal year 2022, Revlon’s net sales decreased by 4.7% to $1.98 billion, gross profit reached $1.145 billion, with and decrease of 6.9% compared to 2021. Operating profit decreased 22.6% to $80 million. Revlon delivered $674 million in net loss.
In terms of regions, North America is still the largest market for Revlon, with net sales reached $ 973.6 million, accounting for almost half of Revlon's net sales. Followed by EMEA, delivered $ 470.9 million in net sale.
Revlon also stated that the three countries outside the U.S. with the highest net sales were China, Australia and the U.K., which together accounted for approximately 17% of the Company's 2022 net sales.
Comments