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Revlon Tells Bankruptcy Judge Its Shares May Be Worthless

  • Bond prices seen implying that equity won’t recover anything
  • Stock tumbles as much as 34% Monday, only to bounce back
Updated on

Revlon Inc. told the judge overseeing the cosmetics giant’s bankruptcy that shareholders don’t need a special, company-funded committee to represent them in the Chapter 11 case because there is no evidence the equity is worth anything.

The company urged US Bankruptcy Court Judge David S. Jones in Manhattan to reject the request from minority equity owners in part because low bond prices imply that equity has little hope of recouping anything. The company also argued that the interests of shareholders are already well represented in the case by majority owner MacAndrews & Forbes as well as other groups