A Delaware bankruptcy judge has officially confirmed the Avon Chapter 11 plan, solidifying a path forward for the embattled cosmetics brand as it navigates billions in debt and a storm of talc-related lawsuits.
U.S. Bankruptcy Judge Craig Goldblatt entered the confirmation order Wednesday, just days after verbally signaling his approval. The plan establishes a trust designed to compensate talc claimants through insurance proceeds—a compromise hammered out after repeated pushback from insurers concerned their rights would be undercut.
Insurance Battles and “Modest” Fixes
Judge Goldblatt, in August, told Avon its proposal could move forward but needed “modest” refinements. His primary concern: ensuring that any insurance rights transferred to the trust would preserve their original terms and conditions.
By Monday’s status conference, Goldblatt assured Avon the plan was “good to go.” He accepted minor edits suggested by objecting insurers but dismissed most of their requested revisions as unnecessary. The approval marks the end of tense negotiations that stretched for months.
