Revlon Inc. shares will be delisted from the New York Stock Exchange after a surge of market interest in the beauty-products supplier following its chapter 11 filing in June, WSJ Pro Bankruptcy reported. Shares fell 5% on yesterday to close at $3.90 before the NYSE said that it had denied Revlon’s appeal to stay listed on the Big Board. The stock is now expected to continue trading over the counter, according to the company, and was trading at around $2 when it filed for bankruptcy but soared more than 400% the following week. It has since closed at prices approaching $9. Revlon, 85% owned by billionaire Ronald Perelman, filed for bankruptcy after struggling with a heavy debt load, tough competition and an acute cash crunch. The NYSE had said in June that it would begin delisting proceedings, which is common when companies file for bankruptcy. Revlon said last week it had appealed the delisting decision “to protect shareholders.” Minority owners of Revlon asked in bankruptcy court in July to form an official committee to represent the interests of equityholders as the company restructures. They pointed to the surging stock price, fueled by a burst of interest from individual investors, as evidence its shares have value. A bankruptcy judge rejected that request, saying that stockholders’ interests were already represented in the bankruptcy case.
