By Senad Karaahmetovic
Reliance Industries (NS:RELI), an India-based conglomerate headed by Mukesh Ambani, is considering buying out Revlon (NYSE:REV), the Economic Times reported today.
The news comes just a few days after Revlon filed for bankruptcy. Shares of Revlon soared over 50% in pre-open Friday.
The company is struggling with a huge debt load as well as paralyzing supply chain issues. Revlon said it expects to generate $575 million in debtor-in-possession financing from its existing lenders.
Chapter 11 filing “will allow Revlon to offer our consumers the iconic products we have delivered for decades, while providing a clearer path for our future growth,” Revlon President and Chief Executive Officer Debra Perelman said.
“Our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand,” Perelman added.