13D Filing: Deerfield Management and Nuo Therapeutics, Inc. (NUOT)

As revealed in a new filing with the Securities and Exchange Commission, James Flynn‘s Deerfield Management disclosed an almost 10% activist stake in Nuo Therapeutics Inc (OTCMKTS:NUOT). According to the 13D filing, Deerfield owns around 159.92 million shares of Nuo Therapeutics. Nuo has recently filed for Chapter 11, and in connection with this, Deerfield said in the filing:

“On January 26, 2016, the Company filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). In connection with such filing, the Funds intend to provide up to $9 million of debtor-in-possession financing, of which $4.5 million would be used to refinance outstanding indebtedness under the Facility Agreement and Notes, subject to approval by the Bankruptcy Court. There can be no assurance that the Bankruptcy Court will approve such financing.

In connection with the Company’s bankruptcy case, the Funds intend to bid for certain assets of the Company, including assets related to the Company’s Angel Concentrated Platelet Rich Plasma System and the Aurix System technologies. The Reporting Persons anticipate that any such bid would be effected pursuant to an asset purchase agreement, would be subject to approval by the Bankruptcy Court, and would be subject to customary conditions, including (but not limited to) a determination that any such bid constitutes the highest and best offer in any auction that may be held in connection with the bankruptcy case. However, there can be no assurance that any such asset sale will be consummated or whether an alternative restructuring plan will be proposed by the Company or any other party or effected.”

You can access the original SEC filing by clicking here.

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