The company also made headlines two years ago when Citigroup accidentally sent nearly $900m of its own money to Revlon's lenders.
Revlon asked its bankruptcy judge to confirm that the chapter 11 filing would not stop Citibank's ongoing appeal over the $504m it is still trying to recover from Revlon lenders. A prompt resolution of the dispute would help its bankruptcy case move forward, it said in court papers.
The mistaken payment is part of a complex battle between Revlon's pre-bankruptcy lenders, who have jockeyed for control during Revlon's attempts to defer debt payments.
An attorney representing junior creditors, Clark Whitmore, said in court the senior lenders' “feeding frenzy” would destroy value for stakeholders lower on the food chain.
Revlon plans to fund its bankruptcy case with $575m in debtor-in-possession financing from its existing lender base. It listed more than $3.54bn in liabilities in its court filing late on Wednesday.
The company said none of its international units, except Canada and the UK, are part of the chapter 11 bankruptcy proceedings.
Mittleman Brothers Investment Management, which holds about 3% of the company's stock, expressed hope equity holders would manage a decent payout despite the bankruptcy. That could happen if Revlon manages higher sales that allow it to overcome supply chain issues, Chris Mittleman said in an email to Reuters.