Why Is Revlon (REV) Stock Plunging Today?
Shares of Revlon (NYSE: REV ) are not faring well on Wednesday, with shares down about 12% in the session. At today’s low, REV stock was down 19.9%, and for the week, it’s still down about 21%. In short, it’s been a tough ride. While the stock has been behaving better lately, investors were hoping for better news. REV stock trading was briefly halted earlier in the day following a ruling from Judge David S. Jones. Ahead of the company’s bankruptcy hearing, the judge declined the formation of an equity committee for its shareholders. That ruling comes after shareholders asked the judge to appoint an official equity committee earlier this month. They argued that no one else could be trusted to “speak up” for minority shareholders. However, the company opposed that stance, arguing , “that the company’s $3.5 billion debt load meant that shareholders would likely receive nothing from the company’s bankruptcy, so a committee’s ‘significant’ costs would greatly outweigh any speculative benefit.” For what it’s worth, the company’s junior creditors and senior lenders did not support the formation of the committee either.
Why Is Revlon (REV) Stock Plunging Today?
Shares of Revlon (NYSE: REV ) are not faring well on Wednesday, with shares down about 12% in the session. At today’s low, REV stock was down 19.9%, and for the week, it’s still down about 21%. In short, it’s been a tough ride. While the stock has been behaving better lately, investors were hoping for better news. REV stock trading was briefly halted earlier in the day following a ruling from Judge David S. Jones. Ahead of the company’s bankruptcy hearing, the judge declined the formation of an equity committee for its shareholders. That ruling comes after shareholders asked the judge to appoint an official equity committee earlier this month. They argued that no one else could be trusted to “speak up” for minority shareholders. However, the company opposed that stance, arguing , “that the company’s $3.5 billion debt load meant that shareholders would likely receive nothing from the company’s bankruptcy, so a committee’s ‘significant’ costs would greatly outweigh any speculative benefit.” For what it’s worth, the company’s junior creditors and senior lenders did not support the formation of the committee either.