Law360 Quotes Todd Philips on Avon’s Chapter 11 Case

A Delaware bankruptcy judge on Wednesday greenlighted cosmetics giant Avon Products Inc.'s request to borrow part of a $43 million financing package to support itself during its Chapter 11 case.

U.S. Bankruptcy Judge Craig T. Goldblatt at a hearing granted interim approval of Avon's debtor-in-possession financing motion, allowing the company to draw $12 million in funding. Avon will use the DIP to fund its bankruptcy case as it works to consummate a sale of the company's non-U.S. operations to Brazilian parent company Natura and deal with hundreds of lawsuits over legacy talc liability.

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At Wednesday's hearing, Todd E. Phillips of Caplin & Drysdale, who has represented talc claimants in the recent bankruptcy case of talc supplier Whittaker, Clark & Daniels, called for the appointment of an official committee to represent talc claimants in Avon's case. Phillips also criticized what he called Avon's "grotesque minimization of harm" from talc.

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