Revlon ( NYSE: REV ) common holders on Tuesday requested that the U.S. Trustee allow for the formation of official equity committee in Revlon's Chapter 11 bankruptcy.
"Recent market trading prices and volumes demonstrate that equity is significantly in the money and is poised to retain material value at the conclusion of Revlon's bankruptcy," according to a letter from White & Case attorney Tom Lauria, which was viewed by Seeking Alpha. "However the prospect of an equity recovery is at risk because the BrandCo lenders are clearly in the driver's seat of the chapter 11 cases."
The letter claims that MacAndrews & Forbes, Revlon's controlling shareholder, has "numerous conflicts of interest" that prevent it from "adequately representing" the interests of minority shareholders.
The letter requests that the U.S. Trustee makes a determination on the formation of an equity committee on or before Friday.
The letter from White & Case's Lauria, the same attorney who successfully represented Hertz ( HTZ ) common holders in the car rental chains bankruptcy case, comes as Revlon shares have nearly tripled since June 16 bankruptcy filing date , as retail investors appear to be believe there's still value in Revlon shares post bankruptcy.
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Revlon common equity holders petition court for official equity committee