Shareholders in the Revlon bankruptcy have asked that an official committee of equityholders, not affiliated with the debtor-retailer’s majority owner Ron Perelman, be appointed in the case.  According to The Wall Street Journal, a group of minority shareholders sent a letter to the US Trustee on July 13th requesting the formation of an official equityholders committee, asserting that shareholders are now in the money, as Revlon’s stock price has nearly tripled since the company filed for bankruptcy a month ago to close at $5.40 on Tuesday, July 12.  According to the minority shareholder group’s July 13 letter, the elevated stock price suggests that shareholders “are poised to retain material value at the conclusion of Revlon’s bankruptcy.”  The shareholders hope to participate in a court hearing this week regarding its formation request.  [WSJ; July 13, 2022]

The retail sector continues to be under watch for potential distress, as reported by Law360.  The industry, which benefited from healthy consumer cash levels and stimulus funding during the pandemic, is now butting up against a “perfect storm” of unfavorable market conditions, as inflation continues to affect consumer spending habits, ballooning prices impact demand for certain goods, retailers contend with bloated inventory levels, and supply chains clash with uncertain production and labor markets abroad.  Experts advise retailers, lenders, landlords and manufacturers to closely monitor the changing global economic climate and its impact on consumer spending and retail operations across the sector.  [Law360; July 15, 2022]

According to The New York Times, Scandinavian airline SAS has filed for bankruptcy protection in the US to help cut debt after wage talks between the company and its pilots collapsed and pilots went on strike in early July.  While the company intends to continue flying through its chapter 11 process, court papers warn that the pilot’s strike could cause the cancellation of nearly half its flights—as the strike is reportedly costing the company $10 million to $13 million per day.  SAS is in discussions with potential lenders who could provide $700 million in debtor-in-possession and exit financing to support operations through and immediately after the chapter 11 process.  The company expects to emerge from bankruptcy in nine to 12 months. [NYT; July 5, 2022]

Cryptocurrency lender Celsius Network LLC filed for bankruptcy protection Wednesday, a month after halting withdrawals in the wake of a collapse in digital currency prices.  According to The Wall Street Journal, the filing follows weeks of market speculation about Celsius following its freezing of withdrawals, swaps, and transfers last month.  Celsius suffered a $17.8 billion reduction in asset values since March 30th—of which, $12.3 billion was due to the depreciation of crypto assets.  During a virtual hearing on Monday, attorneys for the company sought to allay the concerns of its customers, indicating that the company intended to reorganize its business and that customers wouldn’t be forced to take regular fiat currency as a recovery on their claims.  Investors and practitioners alike are keeping a close eye on the filing, as the case will present several legal questions that will need to be addressed before a plan can be formulated, chief among them the question of who holds title over the various crypto coin assets held in Celsius accounts.  [WSJ; July 13, 2022]