After filing for chapter 11 bankruptcy in June, Revlon claimed its $3.5 billion debt prevented it from making payments to its critical vendors. A New York Bankruptcy Judge recently gave permission to the cosmetic company to proceed with a $1.4 billion loan. This permission comes after several junior creditors objected to the loan, arguing that the loan’s onerous terms could block their chance to recover anything from Revlon’s bankruptcy.
The judge’s approval also commits Revlon to non-financial conditions, including a schedule for exiting bankruptcy by April 2023 on terms favorable to the lenders.
Source: Revlon gets court approval for $1.4 billion bankruptcy loan | Reuters