The U.S. Trustee’s Office indicated it would consider the formation of a talc claimants committee in the coming weeks, a decision that could influence the outcome of the bankruptcy proceedings.
Next Steps in Bankruptcy Proceedings
Avon filed for Chapter 11 bankruptcy on Monday, burdened by approximately $1.3 billion in debt, including $800 million in secured debt. The company has also secured a $125 million stalking horse bid from Natura as part of its restructuring plan.
Natura has agreed to settle any claims against it by Avon with a $30 million cash payment, the waiver of $530 million in debt, and the assumption of certain costs related to ongoing litigation and Avon’s retirement plan.
Avon is represented by attorneys from Richards Layton & Finger PA and Weil Gotshal & Manges LLP as it continues to navigate the complexities of its bankruptcy case and pursue a resolution to its financial and legal challenges.
