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Sorrento Therapeutics seeks 59-day exclusivity extension
By Sarah Lizee
Olympia, Wash., June 12 – Sorrento Therapeutics, Inc. is seeking a 59-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.
The extension would push back the exclusive plan filing period through Aug. 11 and the exclusive solicitation period through Oct. 10.
The company said it is still negotiating the terms of a plan with the official committee of unsecured creditors and the official committee of equity security holders.
As previously reported, the debtors recently reached a settlement agreement with Immunotherapy NANTibody, LLC, NantCell, Inc., NantPharma, LLC and related parties. The settlement is subject to court approval at a hearing set for June 29.
While the unsecured creditors’ committee is supportive of the settlement, JMB Capital Partners Lending, LLC, the debtor-in-possession lender, has filed an objection to the settlement, and the equity committee is still evaluating it.
The company said the debtors are working to resolve those concerns.
“With the impending DIP facility maturity, the ongoing sale and financing process, and the pendency of the proposed settlement with the Nant parties, the debtors cannot 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,” the company said in its motion.
“Terminating the exclusive periods could have the opposite result, inviting disruptive and costly litigation.”
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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