The U.S. Bankruptcy Court for the Southern District of Texas granted final approval of Sorrento Therapeutics’ $75 million debtor-in-possession financing from JMB Capital Partners in connection with Sorrento’s Chapter 11 bankruptcy filing in February._x000D_
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Th approval follows the court’s interim approval of the DIP financing, which was granted on Feb. 21, with respect to $30 million of DIP financing. The final approval provides Sorrento with an additional $45 million of liquidity so that it can continue operating its business during its Chapter 11 case._x000D_
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“We are pleased that the court has granted final approval for this financing,” Henry Ji, Ph.D., chairman and CEO of Sorrento Therapeutics, said. “Sorrento will continue operating our business throughout this process, including paying employee wages and benefits and advancing innovative therapies for patients struggling with cancer, intractable pain, infectious disease and more.”_x000D_
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As previously disclosed, due to the possibility of certain actions by a litigation creditor, Sorrento and its wholly-owned, non-operating subsidiary Scintilla Pharmaceuticals sought Chapter 11 relief to safeguard its business and ensure the continuation of business operations while protecting and maximizing value for stakeholders. On March 17, as previously disclosed, the Los Angeles County Superior Court confirmed an arbitration award of $125 million in damages to be paid to Sorrento by NantPharma._x000D_
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Latham & Watkins and Jackson Walker are serving as legal counsel to Sorrento. M3 Partners is serving as restructuring advisor. Moelis & Company is serving as financial advisor and investment banker.
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