Sorrento seeks exclusivity extension, subsidiary DIP lender objects

By Sarah Lizee

Olympia, Wash., Aug. 11 – Sorrento Therapeutics, Inc. is seeking a 59-day extension of its exclusive periods, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company asked the court to extend the exclusive plan filing period through Oct. 9 and the exclusive solicitation period through Dec. 8.

Sorrento said that with its ongoing sale and financing process, it can’t afford the distraction of competing plans and should be given an opportunity to continue their good faith negotiations, aimed at obtaining an efficient and consensual Chapter 11 plan.

While the company said it has the support of the official committee of unsecured creditors for the extension, subsidiary and junior debtor-in-possession lender Scilex Holding Co. filed an objection on Friday.

“These Chapter 11 cases have been languishing for six months and plan negotiations have not begun. The cash burn rate is astronomical, and Scilex’s junior DIP facility matures at the end of September,” it said in the objection.

“Under these circumstances, delay is disastrous, and a 60-day extension is a luxury that the debtors and their creditors cannot afford.”

Scilex said it would agree to give the debtors an additional 30-day extension to evaluate whether a viable exit strategy can be achieved before the debtors become administratively insolvent.

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

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