We are advising Natura &Co in connection with the chapter 11 proceedings of Avon Products, Inc. 

Davis Polk is advising Natura &Co Holding S.A. and certain of its affiliates (collectively, “Natura &Co”) in connection with the chapter 11 proceedings of its non-operational subsidiary Avon Products, Inc. (API) and other non-operational Avon entities (collectively, the “Avon Debtors”). Natura &Co is the largest creditor of API.

On August 12, 2024, the Avon Debtors filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. Natura &Co is providing a $43 million debtor-in-possession financing to API. The DIP financing was approved on an interim basis at API’s “first day” hearing on August 14, 2024, along with other first day relief.

Natura &Co has also entered a $125 million stalking horse credit bid to acquire substantially all of the Avon Debtors’ assets, including the Avon Debtors’ operations outside the United States and certain intellectual property through an in-court sale process. The Avon Debtors are also seeking approval of a settlement with Natura &Co, pursuant to which Natura &Co has agreed to, among other things, forgive $530 million of API’s debt to Natura &Co and make a $30 million cash payment to API. In exchange, Natura &Co will receive releases from certain estate causes of action.

API is the non-operational holding company of the Avon beauty brand and of Avon operations outside the U.S., which include more than 50 countries in 5 continents.

Natura &Co is a Brazilian cosmetics company, headquartered in São Paulo. Natura &Co connects more than 200 million clients worldwide, engaging them through nearly seven million dedicated consultants and representatives, 900 stores and franchises and 19,000 employees.

The Davis Polk restructuring team includes partner Darren S. Klein, counsel Josh Sturm and associates Hailey W. Klabo, Mariya Dekhtyar and Kevin L. Winiarski. The finance team includes partner David J. Kennedy and associates Anmol Sheth and Duan Xu. The litigation team includes partner Elliot Moskowitz, counsel Marc J. Tobak and associate James C. Butler. Partner Michael Senders and associate Andrew R. Board are providing M&A advice. The intellectual property team includes partner Frank J. Azzopardi and associate Lachlan J. Forrester. All members of the Davis Polk team are based in the New York office.

Copy link to share post