Avadim Health completed the court-approved sale of substantially all its assets to a newly-created company owned by funds managed by Hayfin Capital Management (Hayfin) following a Chapter 11 process. The new company (the Company) will continue to operate under the Avadim name. The transaction places the Avadim business on a secure long-term footing and positions the Company for future growth.

Avadim Health announced on June 1, 2021, that Hayfin, as its existing lender, had entered into a binding stalking horse purchase agreement and committed to provide certain debtor-in-possession financing, subject to Court approval. These financing commitments, along with Avadim Health's cash flow from operations, provided Avadim Health with the liquidity to continue operating as usual and meeting its obligations to its customers, vendors and employees while reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code and a sale process took place. Following a comprehensive marketing of Avadim Health's assets to other potential buyers by SSG Capital Advisors, LLC to ensure that Avadim Health received the highest and best price, Hayfin has been certified as the winning bidder.

Keith Daniels of Carl Marks Advisors, who served as Chief Restructuring Officer during the Chapter 11 process, will continue to lead the business as Interim CEO. Scott Pasquith also of Carl Marks Advisors, who served as acting Chief Financial Officer in the same period, will also remain in situ as Interim CFO.

"We are delighted to complete this important transaction, which provides certainty to our customers, suppliers and employees and allows us to continue Avadim's mission of changing lives and transforming communities," said Keith Daniels, the Company's Interim Chief Executive Officer. "We now have the flexibility to invest in the development and marketing of our world-class product range, including our hugely popular Theraworx line, and to grow the business further. Avadim has an exciting future and I'm looking forward to working with our talented team as we develop new ways to care."

"This successful Chapter 11 process has allowed Avadim to address its short-term liquidity issues while preserving its sound underlying business and strong product portfolio," said Howard Rowe, Managing Director and Head of Healthcare at Hayfin Capital Management. "We have been convinced of Avadim's growth potential since first lending to it in 2018 and as the new shareholder we remain fully supportive of the business and the hugely important work it does. Our specialist healthcare investment team has a proven track record of backing ambitious companies like Avadim and we are excited to continue partnering with them to help fund their growth ambitions and bring new products to market."

Avadim Health, Inc. was advised by Carl Marks Advisory Group LLC, the law firm of Pachulski Stang Ziehl & Jones LLP, the law firm of Chapman and Cutler LLP and SSG Capital Advisors, LLC.

The sale was approved by the U.S. Bankruptcy Court for the District of Delaware.