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Sorrento Therapeutics’ disclosure statement conditionally approved
By Sarah Lizee
Olympia, Wash., Oct. 19 – Sorrento Therapeutics, Inc. received conditional approval of the disclosure statement for its Chapter 11 plan from the U.S. Bankruptcy Court for the Southern District of Texas, according to an order filed Wednesday.
The plan confirmation hearing is scheduled for Nov. 14.
The company also received an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan through Nov. 27 and Jan. 26, respectively.
The company’s motion seeking approval to sell its shares in ImmuneOncia Therapeutics Inc. to Yuhan Corp. was also approved Wednesday.
ImmuneOncia Therapeutics is a joint venture between Yuhan and Sorrento. Yuhan offered to purchase the shares for $20 million in cash plus assumed liabilities.
Plan terms
According to the disclosure statement, on the effective date of the plan, all of the debtors’ assets, including all causes of action, will be transferred to a liquidating trust administered by a trustee chosen by general unsecured creditors.
The liquidating trustee will monetize the debtors’ assets by marketing assets for sale and pursuing the debtors’ causes of action, with recoveries to pay claims and interests of the debtors’ stakeholders, as applicable.
Under the plan, holders of other priority claims and other secured claims will be paid in full.
Holders of general unsecured claims will receive their pro rata share of the liquidation trust recovery.
No distribution will be made for intercompany claims or Scintilla equity interests.
Holders of Sorrento equity interests will receive their pro rata share of the liquidation trust recovery, subject to the general unsecured claims being paid in full in cash.
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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