Weil represents Avon Products, Inc. (“API” or the “Company”) and its U.S. subsidiaries in their voluntary chapter 11 cases pending in the U.S. Bankruptcy Court for the District of Delaware. Avon is an iconic brand founded in 1886 and has become a household name across the world for beauty products and cosmetics. The Company filed chapter 11 on August 12, 2024. 

With the guidance of a multidisciplinary Weil team, including its restructuring, M&A, litigation, and finance practices, Weil advised the Company regarding strategic alternatives to address the Company’s significant prepetition secured and unsecured debt ($1.3 billion) and other liabilities, including legacy talc liabilities arising out of its former U.S. operations. Weil helped foster a global settlement between the Company, its parent, Brazilian cosmetics giant Natura &Co Holdings S.A. (“Natura”), and the creditors’ committee and obtained Bankruptcy Court approval of a comprehensive settlement with Natura of potential estate causes of action and a sale of substantially all of the Company’s assets to Natura, including all of its equity in Avon’s international operating subsidiaries, in December 2024 (approximately four (4) months after filing).

The sale to Natura resulted in $125 million in value for the estates in the form of a credit bid by Natura, the assumption and assignment of a substantial number of the Company’s contracts to Natura, and the assumption and payment of approximately $3.1 million in cure costs and other payables by Natura.

In addition, as part of the global settlement, the Debtors’ estates received, among other things:

• A cash payment of $34 million;
• Natura’s commitment to fund the undrawn portion of the Company’s $43 million debtor in possession financing facility to facilitate payment of administrative fees;
• A waiver of all of Natura’s secured debt retained claims not used by Natura in the form of a credit bid as part of the sale, including any deficiency claims;
• Natura’s agreement to assume the $5.9 million underfunded amount of API’s defined benefit pension plan; and
• Certain other valuable assets and consideration, including the right to pursue insurance proceeds and causes of action.

The Bankruptcy Court approved the settlement and sale transactions on December 6, 2024. The settlement became effective on December 6, 2024, and the sale closed on December 10, 2024.

The Weil team was led by Restructuring partners Ronit Berkovich and Matthew Goren, and included Complex Commercial Litigation partner Jessica Falk, Mergers & Acquisitions partner Mariel Cruz, Banking & Finance partner Andrew Yoon, Technology & IP Transactions partner Karen Ballack, and Tax partners Devon Bodoh, Alfonso Dulcey and Jenny Doak.