Avon Creditors Ask for More Time to Look Into Insider Settlement

Junior creditors want more time to examine a settlement that Avon Products Inc. negotiated with its parent company just before it filed Chapter 11.

Natura & Co., the parent company, is using Avon Products Inc.'s bankruptcy to implement a settlement releasing it from legal claims that Avon could’ve brought against Brazil-based Natura, creditors said. The US version of Avon isn’t in bankruptcy and is owned by a different company.

The settlement between Natura and Avon is “arbitrary and deficient” and an investigation into Avon’s possible claims against Natura was “perfunctory, limited in scope, incomplete, and, most importantly, devoid of ...