Perelman’s Revlon to Hand Keys to Lenders Via Debt Proposal (1)

Ronald Perelman’s Revlon Inc. will likely pursue a debt restructuring that hands ownership of the company to lenders and wipes out stockholders, according to an agreement between the bankrupt cosmetics giant and two key creditor groups.

The company entered a restructuring support agreement with a critical lender group and its official committee of unsecured creditors on Monday, filings show. The deal calls for doling out ownership stakes in Revlon to secured lenders, while mostly wiping out the company’s lowest-ranking creditors and leaving existing stockholders with nothing.

The agreement assumes Revlon will seek bankruptcy court approval of the plan to ...