ASHEVILLE – Avadim Health, Inc., an Asheville-based health and wellness company that sells topical products made using a proprietary Bionome Engineered platform, has entered into an agreement with the company’s existing lender, Hayfin Capital Management, to sell most of its assets before filing for Chapter 11 bankruptcy.

According to a declaration, these measures “represent part of a plan to significantly strengthen the company and position it in the best possible way for a long and prosperous future”.

The deal is called a “contract for the sale of hunting horses,” which is a binding sales agreement that a company considering filing for bankruptcy signs before its assets are put up for auction. A business may choose to enter into a contract for the sale of hunting horses with the intention of maximizing the value of its assets or to avoid a court-ordered auction following a bankruptcy filing.

The term is a relic of the hunt, where a real horse or an image of a horse allows a hunter to conceal an approach to a possible target. The bankruptcy proceedings have, however, covered very little.

Hayfin Capital Management has also committed to provide “certain debtor-in-owner financing”, which would be subject to court approval, which will enable Avadim to meet its obligations during the process of selling its assets.

Avadim announced that it has retained the services of investment bank SSG Capital Advisors to launch a global marketing effort to position its assets with other potential buyers in order to maximize potential return by offering the highest and best price. .

“Our goal is to pursue a transaction that maximizes the value of the company and ensures that we have the resources and flexibility to invest and grow the business,” Keith Daniels, director of restructuring at Avadim said in a statement. . The business will continue to operate and Daniels said the actions taken by the business will have “no impact on our day-to-day operations or on our ability to continue to serve our customers.”

The filing was filed with the US District Bankruptcy Court of Delaware. The company was founded in 2007 in Asheville and has been based in Asheville ever since. The company manufactures the Theraworx, Phuel and Combat One brands.