The Revlon makeup line comes out of bankruptcy after being bought by its creditors

Revlon said Tuesday it has emerged from bankruptcy after cutting more than $2.7 billion in debt and handing over control of the beauty products company to its creditors.

The company’s CEO, Debra Perelman, said in a statement that Revlon is stronger post-bankruptcy and well positioned for long-term growth.

“We look forward to unlocking the full potential of our brands and continuing to offer our customers the iconic products they have loved for decades,” Perelman said.

Revlon, which has been selling lipsticks, nail polishes and other products for 91 years beauty productsfiled for bankruptcy in June, claiming its $3.5 billion in debt and pandemic-related disruptions had left it with insufficient liquidity to make timely payments to essential suppliers in its supply chain.

Revlon’s creditors took ownership of the company in exchange for the debt reduction agreement, wiping out the equity value of existing shareholders.

The company’s largest shareholder was MacAndrews & Forbes, owned by Perelman’s father, Ron Perelman. MacAndrews & Forbes owned 85% of the company’s shares at the time of its bankruptcy filing, and the remaining shares saw increased interest from retail investors last year before their value plummeted.

Revlon’s new owners include Glendon Capital Management, King Street Capital Management, Angelo Gordon & Co and Oak Hill Advisors.

Revlon said it emerges from bankruptcy with $1.5 billion of debt and $236 million of available liquidity. The company posted net sales of $490 million in the first quarter, an increase of $479.6 million year-over-year.