Sorrento Says Bankruptcy Will Likely Wipe Out Its Shareholders

Shareholders of bankrupt Sorrento Therapeutics Inc. are unlikely to recover any money under a proposed debt repayment plan, company and creditor lawyers said Wednesday.

Sorrento is moving forward with a plan to sell its assets in Chapter 11 to repay creditors as much as possible. That effort dims the prospects for an alternative restructuring proposal from a committee representing shareholders, that would have allowed the company to continue operating on its own.

Stock owners typically get nothing in bankruptcy, but Sorrento, a developer of cancer and covid treatments, was an unusual case. Earlier in the bankruptcy, shareholders won permission from ...