Avon Products Inc. (API) announced significant developments in its bankruptcy proceedings. A comprehensive settlement and asset sale has been approved and, as of March 5, the company has emerged from Chapter 11 with a clear path forward.
The company originally filed for bankruptcy in August 2024 to seek protection from debt and liabilities after a number of lawsuits alleging Avon’s talc-based products caused asbestos exposure and led to severe health issues for consumers.
In December 2024, the court approved the sale of API’s assets to Natura &Co, parent company of Avon, including a $125 million credit bid by Natura, the assumption of key contracts and a payment of approximately $3.1 million in cure costs. Natura also committed to a $34 million cash payment, funding the remaining $43 million of a debtor-in-possession financial facility, waiving certain secured debt claims and assuming a $5.9 million underfunded pension plan.
These developments are a significant milestone for Avon Products Inc. and usher in resolution to the heightened financial and legal challenges the company has endured.
