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David Jones, U.S. Bankruptcy Judge in Manhattan, on Monday, granted Revlon permission to get a loan of $ $1.4 billion.
David Jones, U.S. Bankruptcy Judge in Manhattan, on Monday, granted Revlon permission to get a loan of $ $1.4 billion. This came after the junior creditors objected that the onerous terms could block the firm’s chances of recovery from bankruptcy.
The court has ordered modifications in the loan as its response to the concerns response to the junior creditors’ concerns. Revlon has now been allowed to go ahead with the loan to continue with its operations during this bankruptcy phase.
Revlon has previously also filed for Chapter 11, wherein it said that its $3.5 billion debt load had left the firm with nothing to make on-time payments to some of its critical vendors in the supply chain of cosmetics.
The firm had sought additional funding from BrandCo Lenders to help bolster its supply chain and fund its bankruptcy court case. It received $1.88 billion in the years before it filed for bankruptcy.
Judge Jones allowed the borrowing of $375 million at the start of the bankruptcy, between $200 million and $1.05 billion in additional funds by Revlon. The firm is also set to repay the previous debts , some of which would be used to pay Revion’s existing debts to BrandCo lenders.