NeuroproteXeon Inc.

December 16, 2019

Many restructuring professionals predicted that “healthcare” would be an active area for bankruptcy in 2019. We suppose painting with such a broad brush increases the likelihood of being correct but it seems that the majority of the activity has really been in specific subsets, e.g., community retirement centers, biopharmaceuticals, and biotech/med-devices. Add another notch to the latter category.

New York-based NeuroproteXeon Inc. and its three affiliated debtors is the latest player in the space; it is “generally engaged in the development, commercialization and marketing of pharmaceutical agents, medical devices and/or other life sciences technologies.” The debtors have been “developing, testing and obtaining worldwide regulatory approval of a product consisting of pharmaceutical grade xenon gas for inhalation, which has been trademarked under the name XENEX™, and a propriety device…which delivers a combination of XENEX™ and oxygen to the respiratory system of persons who experience Post-Cardiac Arrest Syndrome….” The debtors device entered Phase III testing in 2018. But then it got suspended.

Why? Simply, the debtors ran out of money. The bankruptcy provides the debtors with access to critical funding — $5mm from JMB Capital Partners Lending LLC — that will allow them to continue to pursue testing. Meanwhile, the debtors’ investment bankers will market and try to sell the debtors’ assets.

• Jurisdiction: D. of Delaware (Judge Walrath)

• Capital Structure: $250k (JMB)

• Professionals:

  • Legal: Ashby & Geddes PA (William Bowden, Gregory Taylor, Stacy Newman)

  • Financial Advisor: Emerald Capital Advisors Corp. (John Madden)

  • Investment Banker: Lincoln Partners Advisors LLC (Brent Williams)

  • Claims Agent: Omni Agent Solutions (*click on the link above for free docket access)

• Other Parties in Interest:

  • DIP Lender: JMB Capital Partners Lending LLC

    • Legal: Arent Fox LLP (Robert Hirsh, Beth Brownstein) & The Rosner Law Group LLC (Frederick Rosner, Scott Leonhardt, Jason Gibson)