Controversial Revlon Debt Deals Spark Fresh Creditor Lawsuit (1)

A group of Revlon Inc. lenders burned by a series of contentious financing maneuvers beginning in 2019 are seeking to unwind the deals through a lawsuit in bankruptcy court.

Lenders including Brigade Capital Management and Antara Capital accuse the cosmetics giant of wrongly siphoning valuable collateral, like the Elizabeth Arden brand, from existing creditors in order to raise new money as its business faltered. Revlon conspired with a subset of creditors including King Street Capital Management and Angelo Gordon & Co. in order to pull off the deals, according to the lawsuit.

“If allowed to stand, defendants’ unlawful practice ...