Bankrupt Sorrento Therapeutics’ shareholders are seeking to form a committee to advocate for their interests, arguing that the pharmaceutical company is solvent.
The San Diego-based company has reported having more assets than liabilities, but still filed for bankruptcy to resolve a short-term liquidity crunch caused by an unfavorable arbitration decision, Sorrento’s chief restructuring officer said in a February filing.
The Chapter 11 case’s unique circumstance would necessitate the US Trustee, a Justice Department’s bankruptcy watchdog, to create an equity holder committee, shareholders said in an emergency motion Thursday.
“It is entirely unclear how the Debtors intend to exit these cases ...