AIO US Inc. and its debtor affiliates have filed a motion seeking approval of their proposed disclosure statement and voting procedures for their Chapter 11 liquidation plan, according to court documents filed on February 28, 2025, in the United States Bankruptcy Court for the District of Delaware.
The debtors, represented by Richards, Layton & Finger, P.A. and Weil, Gotshal & Manges LLP, are requesting that the court approve the disclosure statement for their "Joint Chapter 11 Plan of Liquidation" along with solicitation and voting procedures, notice forms, and a timeline for plan confirmation.
The case, numbered 24-11836 (CTG), involves AIO US Inc. and multiple affiliated entities, including Avon Products, Inc. The original debtors filed for bankruptcy protection on August 12, 2024, with additional debtors joining the proceedings on October 25, 2024. The cases are being jointly administered.
Key dates proposed in the motion include:
- Disclosure Statement Objection Deadline: March 28, 2025
- Disclosure Statement Hearing: April 4, 2025
- Voting Record Date: April 2, 2025
- Plan Objection Deadline: May 8, 2025
- Voting Deadline: May 8, 2025
- Confirmation Hearing: On or around May 22, 2025
The motion follows the recent consummation of a settlement with Natura &Co Holding S.A. and the sale of substantially all of the debtors' assets to Natura, which closed on December 10, 2024. According to the filing, the debtors have been working with the Official Committee of Unsecured Creditors to develop the plan structure.
Under the proposed plan, Class 3 General Unsecured Claims and Class 4 Talc Claims would be the only classes entitled to vote. The plan contemplates the establishment of an Avon Liquidation Trust to handle distributions to creditors, including holders of talc-related claims.
The debtors stated they filed the plan on February 28, 2025, "to avoid further administrative costs and delays, which could materially and negatively impact recoveries for holders of Allowed Class 3 and Allowed Class 4 Claims."
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 56 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.