ProNerve LLC, a defunct maker of surgery-monitoring devices, is seeking bankruptcy court approval of chapter 11 plan that pays unsecured creditors about five cents on the dollar, Dow Jones Daily Bankruptcy Review reported today. The company on Wednesday filed a combined chapter 11 plan and disclosure statement with the U.S. Bankruptcy Court in Wilmington, Del. ProNerve sold its assets to SpecialtyCare IOM Services LLC in a $35 million debt-for-equity swap after failing to attract any other qualified offers. The purchase price took the form of a credit bid, meaning Specialty Care, which had bought more than $43 million in the company's debt at a discount, essentially forgave that amount. Read more. (Subscription required.)
For more on credit bidding and issues surrounding the strategy, be sure to pick up a copy of ABI’s Credit Bidding in Bankruptcy Sales: A Guide for Lenders, Creditors, and Distressed-Debt Investors.
