NephroGenex, Inc. Commences Voluntary Chapter 11 Proceeding; Seeks To Initiate Sale Process Under Section 363
May 02 2016 - 8:00AM
Business Wire
NephroGenex, Inc. (Nasdaq:NRX), a pharmaceutical company focused
on the development of therapeutics to treat kidney disease, today
announced that it filed a voluntary petition under Chapter 11 of
the United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware (the “Court”).
In connection with its decision to seek Chapter 11 protection,
NephroGenex has retained the investment banking firm of Cassel
Salpeter & Co., LLC, to assist with the anticipated sale of its
assets through a sale process under Section 363 of the Bankruptcy
Code. To that end, NephroGenex anticipates that it will seek
approval by the Court of appropriate bidding and sale procedures in
the early weeks of its Chapter 11 case.
“The Board and management team have conducted a rigorous
assessment of all of our strategic alternatives and believe that
this process represents the best possible solution for NephroGenex,
taking into account our financial situation,” said Richard J.
Markham, Chairman of the Board of NephroGenex. “We are committed to
an outcome that maximizes value and believe that a bankruptcy sale
process will enable us to meet that objective.”
NephroGenex has filed a series of customary motions with the
Court seeking to ensure the continuation of normal operations
during this process, including the timely payment of future
employee wages and salaries, as well as maintaining employee
benefits.
Additional information about this process, as well as court
filings and other documents related to the Chapter 11 proceedings,
are available through NephroGenex’s claims agent, Kurtzman Carson
Consultants LLC, at www.kccllc.net/NephroGenex.
Cole Schotz P.C. is serving as the Company’s legal advisor for
the bankruptcy proceedings and Cassel Salpeter & Co., LLC is
serving as its financial advisor for the bankruptcy
proceedings.
Cautionary Note on Forward-Looking Statements
This press release contains certain statements that are, or may
be deemed “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by words such as “expects,” “intends,”
“anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,”
or words of similar meaning and include, but are not limited to,
statements regarding the outlook for our future business and
financial performance. Forward-looking statements are based on our
current expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual outcomes and results may differ
materially from those in the forward-looking statements due to
global political, economic, business, competitive, market,
regulatory and other factors and risks, including the items
identified in the “Risk Factors” section of our Annual Report on
Form 10-K for the year ended December 31, 2015, filed with the
Securities and Exchange Commission (“SEC”) on March 29, 2016, as
well as in other filings that we may make with the SEC in the
future. The forward-looking statements contained in this press
release reflect our current views with respect to future events,
and we do not undertake and specifically disclaim any obligation to
update any forward-looking statements.
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BMC CommunicationsAmy Bonanno,
646-513-3117abonanno@bmccommunications.com