Revlon Inc REV shares are trading higher Tuesday on continued strength after the company on Monday received permission from a U.S. bankruptcy judge to proceed with a $1.4 billion loan.
Junior creditors had argued that terms in the loan could prevent them from recovering anything from Revlon’s bankruptcy. U.S. Bankruptcy Judge David Jones ordered that changes be made to the loan in response to the junior creditors’ concerns, but ruled that the cosmetic company must be allowed to borrow the cash needed to continue its operations in bankruptcy, according to a Reuters report.
The approval also commits Revlon to non-financial conditions, which includes a schedule for exiting bankruptcy by April 2023 on favorable terms for the lenders, according to the report.
Revlon is trending across social media platforms. It was among the top trending tickers on Stocktwits at last check.
Revlon’s average session volume is 16.769 million over a 100-day period, according to data from Benzinga Pro. Tuesday’s trading volume has already exceeded 24 million at press time.
REV Price Action: Revlon shares are up 65% over the last month.
The stock was up 16.5% at $9.88 at time of publication.
Photo: kinkates from Pixabay.