NephroGenex filed with the U.S. Bankruptcy Court a motion for an order authorizing the Debtor’s entry into a plan support agreement (PSA) with Medpace.
The PSA motion explains, “The Term Sheet contemplates a plan of reorganization pursuant to which Medpace would waive its cash distribution and exchange its unsecured claim against the Debtor in the amount of $4,312,698.51 (the ‘Medpace Claim’) for 100% of the newly-issued equity in the reorganized Debtor. The Medpace Claim is by far the largest claim against the Debtor’s estate and comprises at least 65% of the unsecured claims pool. As a result of the contemplated restructuring, the Debtor’s unsecured creditors are projected to receive a 39.4% to 57.7% recovery on their claims – which is a material improvement over the projected recovery under the Debtor’s Liquidating Plan.”
In addition, “In order to induce the Debtor to withdraw its Liquidating Plan and proceed with the alternative restructuring transaction proposed by Medpace and embodied in the Term Sheet, Medpace agreed to enter into the PSA with the Debtor.” The Court scheduled a February 24, 2017 hearing to consider the motion, with objections due by February 15, 2017.
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