Firm Reps Nuvo in Chapter 11 Bankruptcy Filing

October 2024 — HHR is representing Nuvo Group USA, Inc. and two of its affiliates, including public company Holdco Nuvo Group D.G Ltd. (collectively, Nuvo), in its Chapter 11 bankruptcy proceedings, which Nuvo commenced after failing to raise sufficient financing to fund its operations following a de-SPAC transaction. The case has garnered significant press coverage in Bloomberg, three articles in Law360, The Deal Pipeline, Dealmaker’ Journal and Troubled Company Reporter, among others.

Nuvo sells a remote pregnancy monitoring band called Invu, which can be worn to monitor fetal heart rate and perform non-stress tests remotely through the use of a web-based app. The app also allows for results to be monitored by a medical provider without the need to travel to the provider's office. These non-stress tests are performed regularly for high-risk patients in the final weeks of pregnancy, and can be used to detect and prevent life-threatening emergencies to the parent and child.

The Chapter 11 filing follows a May 1 closing of de-SPAC merger transaction that resulted in Holdco Nuvo Group D.G Ltd. becoming a publicly traded company on the NASDAQ. Following the merger, Nuvo was unable to raise sufficient financing to sustain its operations, which in turn led to the liquidity crisis that necessitated its Chapter 11 filing.

On Aug. 28, Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware granted relief which allowed the company to continue its business, including debtor-in-possession financing to fund the Chapter 11 cases. Nuvo has retained Intrepid Investment Bankers to explore the sale of the business.

The HHR team includes Katie Coleman, Chris Gartman and Jeff Margolin.