Ron Perelman’s Asset Firesale Continues As He Lists $106 Million Superyacht For Sale

Ron Perelman’s Asset Firesale Continues As He Lists $106 Million Superyacht For Sale

Tyler Durden

Fri, 10/23/2020 – 18:40

Ron Perelman, who we reported months ago definitely, certainly, almost positively wasn’t selling all of his assets because he was in a cash crunch is now in the process of selling his $106 million superyacht. 

The yacht, called C2, has been listed by broker Burgess for 90 million euros, according to Bloomberg. It was built in 2009, sports 15 cabins, can accommodate 31 guests and and a crew of 27, and also has a swimming pool. If that wasn’t enough, it includes a retractable movie screen and “fold out balconies” that flank both sides of a “beach club”. 

As they did last month, his spokespeople declined to comment on the listing.

Recall, we wrote last month that Perelman was in the process of selling his Gulfstream 650 and “crates” of his artwork. We noted he had already sold his stake in AM General, sold a flavorings company he has owned for decades and had hired banks to sell stock he owns in other companies.

Among the art he was selling was Jasper Johns’s “0 Through 9,” worth about $70 million, Gerhard Richter’s “Zwei Kerzen (Two Candles),” worth about $50 million and Cy Twombly’s “Leaving Paphos Ringed with Waves,” which is worth about $20 million.

Art adviser Wendy Goldsmith said back in September: “What he’s selling is as blue chip as it gets.”

Perelman has been under pressure due to his crashing stake in Revlon. He has seen his fortune drop from $19 billion to just $4.2 billion over the last two years, according to the Bloomberg Billionaire’s Index. His investment company, MacAndrews & Forbes, said it needed to “rework its holdings” back in July due to the pandemic.

As we noted in September, that “reworking” looked more like a fire sale of – well – everything.

Perelman said publicly: “We quickly took significant steps to react to the unprecedented economic environment that we were facing. I have been very public about my intention to reduce leverage, streamline operations, sell some assets and convert those assets to cash in order to seek new investment opportunities and that is exactly what we are doing.”

He continued: “I realized that for far too long, I have been holding onto too many things that I don’t use or even want. I concluded that it’s time for me to clean house, simplify and give others the chance to enjoy some of the beautiful things that I’ve acquired just as I have for decades.”

A friend of Perelman’s, Graydon Carter, told Bloomberg in September: “Often when people say this sort of thing, it’s masking something else. In Ronald’s case, it’s true. He has learned to love and appreciate the bourgeois comforts of family and home.” He described Perelman as “crazy about spending time at home”.

Some of his sales will go to pay down loans from Citigroup, though Perelman’s spokesman says they are not “forced sales”. She also denied Perelman is selling his 57 acre estate in the Hamptons. 

Perelman is best known being a fearless financial engineer in the 1980’s and 1990’s. Ken Moelis said of Perelman’s track record: “He was imaginative, aggressive and innovative in ways that changed the financial landscape.”

But the $1.74 billion valuation Revlon had back in the 1980’s when he purchased it has plunged to $279 million. It was $365 million when we wrote about Perelman in September.

Perelman loved the business and said it “defined him”. He had offered it several loans and had catalyzed several executive changes to try and keep the business afloat. Revlon is now losing to smaller cosmetic shops that advertise through social media – while dealing with the effects of Covid. 

Some Revlon bonds trade were trading around 14 cents on the dollar in September and the company has $3.73 billion in debt. 

All told, “at least nine banks” have claims against Perelman’s assets, including his art collection, house in the Hamptons and “various aircraft”. There are $267 million in mortgages linked to his Upper East Side headquarters for MacAndrews & Forbes.

Currently, Perelman’s art collection makes up about a third of his fortune. And that can be tricky, for assets that have an illiquid market. Recently, one painting he tried to sell was pulled from auction at the last minute due to lack of interest. 

MacAndrews & Forbes saw its general counsel, spokesman, head of capital markets and CFO all depart over the last few months. 

And despite the spin on Perelman’s fire sales as being a way to spend more time with family, Perelman has his skeptics, including Richard Hack, who wrote a book about him in 1996. 

Hack concluded: “If you want a simpler life, you go buy a farm in Oklahoma, not sell a painting out of your townhouse in Manhattan. If he’s selling his art, it’s because he needs cash.”

We can imagine the same is true about his yacht. 

via ZeroHedge News Tyler Durden

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