08.24.22
Revlon can't even get a bankruptcy filing right. The beleaguered US cosmetics maker saw its stock price plunge 20% in morning trading, after a judge declined to allow the formation of an equity committee for its common shareholders in its bankruptcy proceedings.
Judge David S. Jones denied a motion for the formation of a committee for common Revlon holders, according to his decision during a Zoom hearing.
Revlon shares traded wildly on Monday with shares falling more than 34% before the stock was halted. When Revlon reopened, losses were pared to -12%.
Over the weekend, Revlon argued that there is no need for an official equity holders committee in its Chapter 11 reorganization and warned that it appears unlikely that shareholders will receive much in the bankruptcy. Revlon noted that Hertz Global Holdings had no official shareholder committee in its bankruptcy and still paid out roughly $1 billion in equity value.
Wall Street watchers note that volatility on Revlon is especially high, in general, with short interest at 35% of total float. Last week, Revlon shares soared after Morgan Stanley disclosed that it increased its stake in the cosmetics company. Other suitors may emerge as well. During the past six weeks, double-digit daily moves have been frequent for Revlon stock.
Judge David S. Jones denied a motion for the formation of a committee for common Revlon holders, according to his decision during a Zoom hearing.
Revlon shares traded wildly on Monday with shares falling more than 34% before the stock was halted. When Revlon reopened, losses were pared to -12%.
Over the weekend, Revlon argued that there is no need for an official equity holders committee in its Chapter 11 reorganization and warned that it appears unlikely that shareholders will receive much in the bankruptcy. Revlon noted that Hertz Global Holdings had no official shareholder committee in its bankruptcy and still paid out roughly $1 billion in equity value.
Wall Street watchers note that volatility on Revlon is especially high, in general, with short interest at 35% of total float. Last week, Revlon shares soared after Morgan Stanley disclosed that it increased its stake in the cosmetics company. Other suitors may emerge as well. During the past six weeks, double-digit daily moves have been frequent for Revlon stock.