Posted on 06/16/2022 5:34:56 AM PDT by Red Badger
Cosmetics maker Revlon has filed for Chapter 11 bankruptcy protection, succumbing to a rising debt load, online competition and supply chain woes.
Why it matters: While corporate bankruptcies remain at some of their lowest levels since 2010, the lipstick and nail polish maker could foreshadow more upheaval in the consumer discretionary sector as the U.S. braces for a possible recession.
Details: The company plans to receive $575 million in debtor-in-possession financing from its existing lenders, which will allow it to continue operating.
Revlon said its estimated liabilities were between $1 billion and $10 billion, according to a court filing. What they're saying: "By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brands," Revlon CEO Debra Perelman said in a statement.
Between 1 billion and 10 billion? Do they have a bookkeeper?
The company plans to receive $575 million in debtor-in-possession financing from its existing lenders, which will allow it to continue operating.
expectations are wonderful things.
There’s a amber heard joke in there somewhere I just can’t pull it out
Too many pigs, not enough lipstick.................
Feminists and climate activists and lefties don’t use makeup, and that’s about half of the women these days.
Working from home will have a lot of repercussions.
I’m a feminist.
I wear makeup.
He left for Argentina.....................
The half billion loan should just be enough to pay bonuses to all COs before the company is liquidated.
Do they have a bookkeeper? Maybe? But they do have a dartboard.
Sounds like they hired one from the government.
I'm referring to the RUSH classical definition of feminist. https://www.washingtonpost.com/lifestyle/style/rush-limbaugh-feminism-feminazis/2021/02/19/3a00f852-7202-11eb-85fa-e0ccb3660358_story.html
What the heck is “debtor-in-possession” financing? Sort of sounds like their “accounts payable” was just converted into a “loan” by the bankruptcy court. IOW’s Revlon suppliers are now involuntary lenders?
Shepard Smith is deeply saddened.
I’m an old school feminist. Equality of opportunity.
Just ran across a fascinating report by McKinsey. In pdf, though, not HTML...
Looks like working from home, fewer in-store shopping venues, more women doing DIY and self-care have really done a number on the cosmetics industry.
WTG, Deep State!
Good question, I didn’t catch that either.
What Is Debtor-in-Possession (DIP) Financing?
Debtor-in-possession (DIP) financing is a special kind of financing meant for companies that are in bankruptcy. Only companies that have filed for bankruptcy protection under Chapter 11 are allowed to access DIP financing, which usually happens at the start of a filing. DIP financing is used to facilitate the reorganization of a debtor-in-possession (the status of a company that has filed for bankruptcy) by allowing it to raise capital to fund its operations as its bankruptcy case runs its course. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity, and other claims.
https://www.investopedia.com/terms/d/debtorinpossessionfinancing.asp
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