AIO US, Inc. and its debtor affiliates are now in the post-effective-date phase of a confirmed liquidation plan, with the Avon Liquidation Trust administering residual assets, insurance rights, and causes of action for the benefit of talc and unsecured claimants following Judge Craig T. Goldblatt's September 24, 2025 entry of the confirmation order on the Fourth Amended Joint Chapter 11 Plan of Liquidation (Confirmation OrderDkt. 1550). The Debtors — a group of U.S. holding-company entities led by AIO US, Inc. and including Avon Products, Inc. (API), MI Holdings, Inc., and Avon Capital Corporation, joined later by sixteen dormant legacy subsidiaries — filed their voluntary Chapter 11 petitions on August 12, 2024 in the District of Delaware (Voluntary PetitionDkt. 1). The cases were precipitated by escalating legacy talc and asbestos personal-injury litigation (approximately 386 pending cases at filing), roughly $225 million in accumulated talc defense and settlement costs since 2010, adverse jury verdicts, and limited insurance recovery, all layered on top of approximately $1.294 billion in prepetition funded debt owed predominantly to affiliates of Brazilian parent Natura &Co Holding S.A. (First Day DeclarationDkt. 12).
From the petition date, the restructuring was built around a section 363 sale of substantially all assets to a Natura affiliate, with Natura &Co UK Holdings Limited acting as stalking-horse bidder on a roughly $125 million credit bid, supported by a Natura Settlement Agreement and up to $43 million in senior secured debtor-in-possession financing (). An official committee of unsecured creditors was appointed in late August 2024 and contested elements of the DIP and cash-collateral package before final financing authority was granted. In October 2024, sixteen additional non-operating U.S. subsidiaries were consigned to the cases to clear the path for the stalking-horse sale ().
With the sale process completed, the Debtors shifted to a consensual liquidation plan. The Modified Second Amended Joint Chapter 11 Plan of Liquidation establishes the Avon Liquidation Trust under Liquidating Trustee Hon. Melanie L. Cyganowski (Ret.) to wind down remaining assets and resolve talc claims through Trust Distribution Procedures (PlanDkt. 1319). Recoveries run through segregated funds: a $14 million GUC Recovery Fund for non-electing general unsecured claims, an option for holders of the allowed 2043 Notes claim to share talc-linked recoveries, a target $15 million trust operating reserve, and post-effective-date cash funding talc distributions (Confirmation OrderDkt. 1550). The Plan became effective in October 2025, moving the cases from solicitation and confirmation into trust administration and the distribution phase.