Approval of Stalking Horse Bid and Debtor in Possession Loan Facility in Sorrento Therapeutics Bankruptcy Proceedings
August 8, 2023
Source: Best Stocks
Sorrento Therapeutics, Inc. has recently received approval from the U.S. Bankruptcy Court for the Southern District of Texas regarding a significant development in their ongoing bankruptcy proceedings. The court has given the green light to a “stalking horse” bid worth $105 million for the acquisition of Scilex Holding Company’s common stock, preferred stock, and warrants. The successful bidder in this case is Oramed Pharmaceuticals, Inc.
However, it is important to note that this agreement with Oramed is not set in stone just yet. The bid is subject to an auction, allowing other interested parties to submit potentially higher or more favorable offers. If you or your company are interested in participating in this auction and bidding for the Scilex Stock, please reach out to Sorrento’s investment banker, Moelis & Company LLC, as soon as possible. They will guide you through the process and provide the necessary bid materials.
Sorrento has set a deadline for qualified bids to be submitted by August 11, 2023, at 5:00 p.m. (ET). If any bids surpass Oramed’s offer, an auction for the Scilex Stock will be held on August 14, 2023. This ensures a fair and competitive process for all interested parties.
In addition to the stalking horse bid, the Bankruptcy Court has also approved a debtor-in-possession term loan facility worth $100 million from Oramed. This loan will provide much-needed liquidity to the Debtor, allowing them to pay off their existing senior debtor-in-possession financing facility. It will also enable Sorrento to continue operating its business smoothly as it navigates the sale and exit financing process, with the ultimate goal of emerging from chapter 11.
Overall, these developments mark significant progress in Sorrento Therapeutics, Inc.’s bankruptcy proceedings. The approval of the stalking horse bid and the debtor-in-possession term loan facility provide a solid foundation for the company to move forward and work towards a successful resolution.
However, it is important to note that this agreement with Oramed is not set in stone just yet. The bid is subject to an auction, allowing other interested parties to submit potentially higher or more favorable offers. If you or your company are interested in participating in this auction and bidding for the Scilex Stock, please reach out to Sorrento’s investment banker, Moelis & Company LLC, as soon as possible. They will guide you through the process and provide the necessary bid materials.
Sorrento has set a deadline for qualified bids to be submitted by August 11, 2023, at 5:00 p.m. (ET). If any bids surpass Oramed’s offer, an auction for the Scilex Stock will be held on August 14, 2023. This ensures a fair and competitive process for all interested parties.
In addition to the stalking horse bid, the Bankruptcy Court has also approved a debtor-in-possession term loan facility worth $100 million from Oramed. This loan will provide much-needed liquidity to the Debtor, allowing them to pay off their existing senior debtor-in-possession financing facility. It will also enable Sorrento to continue operating its business smoothly as it navigates the sale and exit financing process, with the ultimate goal of emerging from chapter 11.
Overall, these developments mark significant progress in Sorrento Therapeutics, Inc.’s bankruptcy proceedings. The approval of the stalking horse bid and the debtor-in-possession term loan facility provide a solid foundation for the company to move forward and work towards a successful resolution.
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