Nuvectra creditors committee asks court to delay asset sale hearing

By Caroline Salls

Pittsburgh, March 3 – Nuvectra Corp.’s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the Eastern District of Texas to postpone the hearing on approval of the company’s asset sale to allow the Food and Drug Administration to complete its review of its Virtis product, according to a Monday filing.

The committee said at the beginning of Nuvectra’s Chapter 11 case, all parties, including the committee, were hopeful that the company would have received FDA approval for Virtis in time for the auction. As a result, the committee said an expedited sale process was launched to preserve estate assets.

However, the creditor group said Nuvectra is still waiting for FDA approval, although it remains hopeful that it will receive approval soon.

“Without such approval, the sale price paid at the auction was much lower than would otherwise likely be obtained if the debtor had received such approval,” the committee said.

“Given the extremely underwhelming sale results, the hearing to approve the sale should be postponed for a reasonable period of time, subject to the court’s availability, to allow the FDA to complete its review of the debtor’s Virtis product so that parties can determine whether the sale is truly in the best interests of the estate.”

The hearing is currently scheduled for Friday.

Nuvectra is a Plano, Tex.-based neurostimulation company. The company filed bankruptcy on Nov. 12 under Chapter 11 case number 19-43090.

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