NephroGenex Files For Bankruptcy Protection Under Chapter 11

NephroGenex, Inc. NRX revealed it filed for a voluntary petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware in the United States. According to the company, it retained the investment banking firm of Cassel Salpeter & Co., LLC, to help with the expected divestment of its assets through a sale process.

NephroGenex indicated that it would seek the court approval for the sale procedures in the early weeks of its Chapter 11 case.

The company's Chairman of the board, Richard Markham, commented, "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."

He added, "We are committed to an outcome that maximizes value and believe that a bankruptcy sale process will enable us to meet that objective."

NephroGenex indicated that it filed a series of customary motions with the Court seeking to ensure the continuation of normal operations during this process. That included the timely payment of future employee wages, as well as, salaries, and maintaining employee benefits.

In pre-market trading on Monday, the stock traded 39.2 percent down.