Revlon, the troubled 90-year-old Recent York-based beauty company that owns the namesake Revlon, Elizabeth Arden and Almay brands, looks to be near reaching a deal that may see creditors take over the cosmetics company that Ron Perelman has helmed for many years.

In line with legal filings, Revlon has entered right into a Chapter 11 restructuring support agreement with two creditor groups that may involve ownership stakes being handed to secured lenders, while existing shareholders, including Perelman, who controlled around 85 percent of the corporate as of earlier this yr, can be left with nothing. The 2 creditor groups are the Consenting BrandCo Lenders, which incorporates Ares Management and Oak Hill Advisors, and the Official Committee of Unsecured Creditors, appointed within the Chapter 11 cases.

Any agreement would require the approval of a U.S. bankruptcy court and for Revlon to exit the Chapter 11 bankruptcy process by no later than April 17, while the choice of a sale can also be still on the table. A hearing can be held on Thursday.

Revlon has been battling a hefty pile of debt — about $3.7 billion — that it spent much of 2020 renegotiating, which enabled it to avoid a more formal restructuring process back then. But supply chain issues, soaring inflation and increased competition from the likes of The Estée Lauder Cos., Coty Inc. and a plethora of digital start-ups have only exacerbated the situation and these aspects, combined with loans coming up for renewal, forced it into chapter 11 earlier this yr. Revlon also previously tried to sell several of its brands over time, cycling through different bankers.

“Consumer demand for our products stays strong — people love our brands, and we proceed to have a healthy market position,” Debra Perelman, Revlon’s president and chief executive officer, said on the time. “But our difficult capital structure has limited our ability to navigate macroeconomic issues with a view to meet this demand. By addressing these complex legacy debt constraints, we expect to have the opportunity to simplify our capital structure and significantly reduce our debt, enabling us to unlock the complete potential of our globally recognized brands.”

Her father, Ron Perelman, has been the bulk owner of Revlon for the reason that mid-’80s, gaining control via a hostile takeover through his company MacAndrews & Forbes. He took Revlon to latest heights within the ’80s and ’90s, when he used the brand to catapult himself into the worlds of society, fashion and Hollywood by tapping such faces as Cindy Crawford, Christy Turlington, Jerry Hall and more.

But in 2020 he revealed that he’d been selling off assets — from firms to high quality art — and firstly of this yr, he offloaded his opulent Lily Pond Lane mansion in East Hampton, Recent York, for $84 million. This was down from the unique listing price of $115 million.