Sorrento unsecured creditors object to equity committee appointment

By Sarah Lizee

Olympia, Wash., March 24 – Sorrento Therapeutics, Inc.’s official committee of unsecured creditors objected to a motion from a group of equity holders seeking official representation in the case, according to documents filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The official unsecured creditors committee said appointment of an equity committee is neither necessary to protect the interests of the debtors’ equity holders nor an efficient use of the estates’ limited resources.

“These cases are operating on a tight budget drawn from expensive debtor-in-possession financing, and already have two independent fiduciaries working to identify a path to exit that maximizes value for all stakeholders entitled to share in that value,” the committee said in its objection.

“Under these circumstances, another estate-funded committee will not contribute anything additional to the debtors’ reorganization process that merits the increased cost – and the added drain on liquidity would shorten the time available to identify and implement a restructuring solution.”

As previously reported, the group of equity holders seeking the equity committee appointment consists of Eagle Rock Capital Management, Alta Fundamental Advisors, HZ Investments, LLC, Invictus Global Management, LLC and four individuals.

The biopharmaceutical company is based in San Diego. The company filed bankruptcy on Feb. 13 under Chapter 11 case number 23-90085.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.