NEW YORK (awp / afp) – Revlon, an American manufacturer of nail polish, lipstick and perfume, has filed a lawsuit against Chapter 11 of the U.S. Bankruptcy Code seeking to reduce his debt.
In a document filed late Wednesday in a New York court, the company said the total value of its debt was between $ 1 billion and $ 10 billion. It announced long-term liabilities of $ 3.3 billion (approximately in Swiss francs) in the first quarter.
Its assets are in the $ 1-10 billion range. As of March 31, it was $ 2.4 billion.
In the United States, the use of Chapter 11 is a tool that allows a company that is unable to repay its debt to restructure its defenses while continuing its current operations.
Bankruptcy filing “enables Revlon to deliver to our customers the iconic products we have provided for decades, while listing a clear path for our future growth,” said Debra Pearlman, CEO of the New York Group.
The company said it expects to receive $ 575 million in funding from its creditors if its bankruptcy is approved by a US court.
The majority, owned by billionaire investor Ronald Peralman and owned by McAndrews & Forbes Holdings and run by his daughter Debra Perelman, Revlon reported a net loss of $ 67 million from January to March.
The company, which markets the brands Elizabeth Orton (acquired in 2016), Alme and Britney Spears Fragrances and operates in more than 150 countries, has been hit hard by the supply chain crisis and high inflation.
Revlon is facing increasingly fierce competition, which has weighed on its revenue in recent years.
In August 2020, the group was at the center of financial news when it revealed that Citibank had “misappropriated” $ 900 million to several of the manufacturer’s debtors.
The bank filed a complaint against the investment fund for refusing to pay a portion of the amount, but it was dismissed by a New York judge.
afp / buc