Avadim Health, a healthcare and wellness provider, reached an agreement in principle to sell substantially all of its assets and filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Hayfin Capital Management, Avadim’s existing lender, entered into a binding stalking horse purchase agreement and committed to provide certain debtor-in-possession financing, subject to court approval, to allow the company to meet its obligations during the sale process. Avadim also retained investment bank SSG Capital Advisors to initiate the marketing of its assets to other potential buyers to ensure it receives the highest and best price.
“Our goal is to pursue a transaction that maximizes the value of the company and ensures we have the necessary resources and flexibility to invest in and grow the business,” Keith Daniels, chief restructuring officer for Avadim Health, said. “We will continue to create and market world-class products — including our Theraworx line — that our customers have come to love.”
Avadim Health will continue normal business operations throughout the Chapter 11 and sale process.
“We are confident this action provides us with the most efficient and effective way to pursue a transaction while at the same time allowing us to address financial challenges and best position the company going forward,” Daniels said. “To be clear, the action has no impact on our day-to-day business or our ability to continue serving our customers.”
The financing from Hayfin Capital Management and Avadim’s cash flow from operations will provide ample liquidity to operate the business and meet ongoing obligations to customers, vendors and employees through the completion of the sale process.
“We are proud of the important and meaningful work Avadim has done over the years and are committed to ensuring the company has the right resources in place to continue its mission,” Daniels said. “We are excited about our future.”
Avadim is being advised by Carl Marks Advisory Group, Pachulski Stang Ziehl & Jones Chapman and Cutler and SSG Capital Advisors are advising Avadim. The filing was made in the U.S. bankruptcy court for the district of Delaware.
