Revlon’s key employee retention plan has issues, U.S. trustee says

By Sarah Lizee

Olympia, Wash., July 15 – Revlon, Inc.’s motion seeking approval of a $16.4 million key employee retention plan for 160 individuals drew an objection Friday from Region 2 U.S. trustee William K. Harrington, according to court documents filed with the U.S. Bankruptcy Court for the Southern District of New York.

Harrington said the motion doesn’t give the names of the participants, information regarding their job descriptions, and the salaries and bonus payments of the participants.

The U.S. trustee also said the participants have received prepetition retention-based equity awards, and are set to receive post-petition retention-based equity awards, but the amounts paid aren’t fully addressed in the motion.

Harrington said that some of that information, however, has been disclosed by the company to the U.S. trustee, and he has concerns that some of the participants are actually insiders of the company.

The U.S. trustee said the court, himself, and other parties in interest need more facts with which to make a reasoned determination as to whether the characterization of non-insider status to each prospective participant is appropriate.

The hair color products and cosmetics company is based in New York. The company filed bankruptcy on June 15 under Chapter 11 case number 22-10760.

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