Revlon shareholders denied option to form bankruptcy committee by judge

Yahoo Finance Live looks at Revlon's sliding stock as a judge rules against calls from shareholders to form a bankruptcy committee.

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RACHELLE AKUFFO: So starting off with Revlon, a blow for Revlon, shareholders in bankruptcy proceedings sent shares tumbling. They're currently down just about 8%. But that's after paring back losses earlier this afternoon. Now today, a judge ruled against minority shareholders wanting to form a special equity committee for Revlon's common shareholders in this Chapter 11 case. Now the creditors will, of course, be the ones who get ahead of shareholders. And just yesterday, Revlon told the judge, look, the special committee was unnecessary because the shares may be worthless.

Now, the judge echoed that pessimism. Yet despite being down today, the stock is still up more than 70% since its June bankruptcy announcement. Now Revlon's meme stock status does signal that some retail investors are still hoping there'll be some value in Revlon shares, even after bankruptcy, Seana.

SEANA SMITH: Yeah, Rachelle, it's very similar to what we saw from Hertz, right, a couple of years ago that when they filed for bankruptcy in 2020, that, of course, became a meme play. We saw this surge in retail investor interest, similar to what we're seeing in Revlon. So investors here are really hoping that they're going to be bailed out. I don't know if they can count on this one, though. But it is astonishing when you still see so much excitement around a name that has, in fact, filed for bankruptcy.