Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

NephroGenex Plan Confirmed

The U.S. Bankruptcy Court issued an order confirming NephroGenex's modified Plan of Reorganization. As previously reported, "The total number of shares of stock which the corporation is authorized to issue is $5,000 shares of common stock, having a par value of $0.001 per share….To the extent prohibited by Section 1123 of title 11 of the United States Code, as amended, the corporation shall not issue any class or series of nonvoting stock; provided, however that the foregoing (i) will have no further force and effect beyond that required under Section 1123 of the Bankruptcy Code, (ii) will have such force and effect, if any, only for so long as such Section 1123 is in effect and applicable to the corporation and (iii) may be amended or eliminated in accordance with applicable law as from time to time in effect….The Trustee shall be compensated in the amount of $5,000 per month, until the Chapter 11 Case has been closed and $200 per month thereafter….The Debtor projected that, under the Liquidating Plan, the Debtor's unsecured creditors would receive distributions equal to 26.8% to 37.1% of the allowed amounts of their claims….Medpace has agreed to waive its Cash Distribution under the Plan and exchange its General Unsecured Claim against the Debtor in the amount of $4,312,698.51 (the 'Medpace Claim') for one hundred percent (100%) of the New Common Stock 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 pool of General Unsecured Claims. As a result of the contemplated restructuring under the Plan, Holders of Allowed General Unsecured Claims are projected to receive a 46.4% to 50.4% recovery on their Claims--which is a material improvement over the 26.8% to 37.1% projected recovery under the Debtor's Liquidating Plan." This drug development company filed for Chapter 11 protection on April 30, 2016, listing $23 million in pre-petition assets.

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