Revlon stock price plunges 20%
Judge David S. Jones denied a motion to form a committee for joint owners of Revlon, according to his decision during a Zoom hearing.
Shares of Revlon traded wildly on Monday, with shares falling more than 34% before the stock halted. When Revlon reopened, losses were reduced to -12%.
Over the weekend, Revlon argued there was no need for a formal shareholders’ committee in its Chapter 11 reorganization and warned that shareholders seem unlikely to receive much in the bankruptcy. . Revlon noted that Hertz Global Holdings did not have a formal shareholders committee in its bankruptcy and still paid out about $1 billion in net worth.
Wall Street watchers note that volatility on Revlon is particularly high, in general, with short interest at 35% of total float. Last week Revlon shares soared after Morgan Stanley revealed it had increased its stake in the cosmetics company. Other suitors may also emerge. Over the past six weeks, double-digit daily moves have been common for Revlon shares.