Revlon Approved to Exit Bankruptcy Under $2.7 Billion Debt Reduction Deal

A U.S. judge on Monday approved Revlon Inc’s reorganization plan, allowing the cosmetics maker to cut $2.7 billion from its debt and exit bankruptcy later this month.

U.S. Bankruptcy Judge David Jones in Manhattan, who has been overseeing the company’s Chapter 11 bankruptcy, said Revlon had reached “a hard-fought multi-faceted settlement” that resolves a “series of enterprise-threatening” risks to the business, including “debilitating” litigation among its lenders.

Under the plan, Revlon’s lenders will take ownership of the company in exchange for the debt reduction agreement, wiping out the equity value of existing shareholders. The reorganized company plans to raise $670 million after exiting from bankruptcy by selling new equity shares.

Read the source article at finance.yahoo.com