The U.S. Bankruptcy Court approved NephroGenex’s entry into a plan support agreement (PSA) with Medpace.
As previously reported, “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.”
Read more bankruptcy news.
The post NephroGenex PSA Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.