Hindenburg-Target Sorrento Therapeutics Files for Bankruptcy (2)

Sorrento Therapeutics Inc., a firm working on a Covid-19 therapy once targeted by shortseller Hindenburg Research, filed for Chapter 11 bankruptcy after facing a $50 million legal judgment it couldn’t pay.

The US-listed company has estimated liabilities of between $100 million and $500 million, versus assets of at least $1 billion, according to a filing on Monday. Sorrento intends to keep operating during the bankruptcy.

Sorrento went bankrupt following a loss in an ongoing legal battle with a competitor and former business partner, according to Chief Restructuring Officer Mohsin Meghji. Lacking the cash to pay a $50 million ...