Avon’s restructuring process has received a boost following an agreement between parent company Natura & Co and Avon Products Inc (API’s) unsecured creditors.
Avon’s UK, Europe and Latin America owner filed for bankruptcy in August to offload more than US$1bn in debt, predominantly related to talc lawsuits.
However, in a new securities filing – dated 27 November – Natura has committed to pay $34m in cash to API’s debtors’ estate.
This is in addition to the originally declared financing sum of $43m.
The Brazilian beauty conglomerate has also agreed to waive all of its secured and unsecured credits against the Avon debtors.
The move, which requires final documentation and court approval, is expected to help streamline restructuring.
API is a US-based, non-operational holding company of Avon.
It has not sold products in the US since it divested its North America business in 2016.
However, it remains the holding company of the brand's non-US operating entities.
Avon’s operating businesses outside of the states are not part of the Chapter 11 proceedings.
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