NephroGenex filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including May 31, 2017.
The motion explains, “The extension requested in the motion will provide the Debtor the opportunity to finalize, file and solicit the Reorganization Plan, which, as a result, will maximize value for all of the Debtor’s creditors…. The Debtor has explored various opportunities to maximize the value of the estate and the only reasonable alternative to the Reorganization Plan is the Liquidating Plan, which plan would provide a lower recovery to the Debtor’s unsecured creditors. As, negotiations leading to the PSA and the Plan Term Sheet were a significant step in the Chapter 11 case.”
In addition, “The proposed Reorganization Plan to be filed not only is viable, but is anticipated to generate a materially higher recovery for unsecured creditors than the Liquidating Plan currently on file with the Court. Moreover, the structure of the proposed Reorganization Plan was negotiated with the Debtor’s largest unsecured creditor, Medpace.” The Court scheduled a March 7, 2017 hearing to consider the motion, with objections due by February 28, 2017.
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