Lowenstein, with co-counsel Fox Rothschild LLP, represents the official committee of unsecured creditors in the Chapter 11 cases of health care company Avadim Health, Inc., which are pending in the U.S. Bankruptcy Court for the District of Delaware. On October 27, 2021, the Bankruptcy Court confirmed the Chapter 11 plan proposed jointly by the company and the official committee of unsecured creditors.
The plan provides for the liquidation and distribution of the debtors’ remaining assets after the sale of substantially all their assets to Midava Holdings 3, Inc. for a credit bid of approximately $70 million. The purchaser is a newly created company owned by funds managed by Hayfin Capital Management.
The plan creates a liquidating trust funded with about $300,000 of cash, as well as estate causes of action, the proceeds of which will be distributed to beneficiaries of the liquidating trust, including general unsecured creditors.
Avadim develops and produces nonprescription topical sprays and products for hygiene, immune health, and other retail and institutional uses.
The team included Eric Chafetz, Robert M. Hirsh, Jordana L. Renert and Erica G. Mannix.
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