Sorrento Gets Debt Holder Approval
In lieu of a quarterly interest payment of about $785,000, Sorrento's debt holders agreed to a consent fee of $320,000 on January 7, the company said.
Sorrento still needs to get its plan approved by the majority of its common shareholders and its Series A investors, among others, if it is to complete the restructuring by March.
"Receiving consent from 100% of the convertible debenture holders is a strong indication of the commitment of our investors to the survival and success of the Company," said Phil Arneson, Sorrento's CEO, in a prepared statement.
Meanwhile, Wall Street has given Sorrento a boost since it began rigorously cleaning house. Its market capitalization is now more than $6 million, more than twice its October 30 market cap of $2.89 million.
Sorrento shares were down $0.61 (-7.95%) to $7.06 in late morning trading on Wednesday.
— Phil Harvey, Senior Editor, Light Reading