Revlon gets approval of court for $1.4 billion bankruptcy loan

Revlon sought additional financing from a coalition which is known as the BrandCo Lenders

Revlon Inc. received a U.S. bankruptcy judge's permission to proceed with a $1.4 billion loan in lieu of an objection by junior creditors who argued that its terms could stand in their way of recovering anything from the company's bankruptcy. U.S. Bankruptcy Judge David Jones in Manhattan ordered changes to the loan in response to the junior creditors' concerns but laid down that Revlon should be allowed to borrow the money it needs to carry on its operations in bankruptcy. Revlon filed under Chapter 11 in June, saying its $3.5 billion debt left it too cash-strapped to make timely payments to its critical vendors.

To boost its supply chain and fund its bankruptcy court case, Revlon sought additional financing from a coalition which is known as the BrandCo Lenders, which had lent Revlon $1.88 billion in the years preceding its filing for bankruptcy. Jones permitted Revlon to borrow $375 million at the beginning of the bankruptcy declaration. Jones also ordered some changes to the loan agreement, giving Revlon more time to come up with a restructuring plan and giving junior creditors more authority to bring lawsuits on Revlon's behalf.