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.

About Lowenstein Sandler LLP
Lowenstein Sandler is a national law firm with more than 350 lawyers based in New York, New Jersey, Palo Alto, Utah, and Washington, D.C. The firm represents leaders in virtually every sector of the global economy, with particular emphasis on investment funds, life sciences, and technology. Recognized for its entrepreneurial spirit and high standard of client service, the firm is committed to the interests of its clients, colleagues, and communities.