Sorrento Therapeutics’ plan of liquidation effective as of April 10

By Sarah Lizee

Olympia, Wash., April 11 – Sorrento Therapeutics, Inc.’s Chapter 11 plan of liquidation went into effect on Wednesday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan was confirmed on Nov. 30, as previously reported. However, the company said it did not intend to implement the plan until spring 2024 for operational reasons.

Under 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.

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.

© 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.