Sorrento gets more time to file plan under amended DIP order

By Sarah Lizee

Olympia, Wash., Sept. 1 – Sorrento Therapeutics, Inc. received an extension under a debtor-in-possession financing order of the deadline to file a Chapter 11 plan through Sept. 8, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The DIP financing is with Oramed Pharmaceuticals, Inc.

As previously reported, Oramed has offered to purchase substantially all of the debtors’ common stock, preferred stock, and warrants and options for common stock in Scilex for a purchase price of $105 million. The sale was approved on Aug. 25.

Oramed also agreed to provide liquidity through a $100 million senior secured post-petition financing facility.

The DIP facility is a bridge to the sale, with Oramed credit bidding the full amount of its DIP claim for the Scilex stock and paying $5 million in additional cash.

The facility is set to mature on Oct. 15, 2023 and bear interest at 15% per annum.

The biopharmaceutical company is based in San Diego. The company filed bankruptcy on Feb. 13, 2023 under Chapter 11 case number 23-90085.

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