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Sorrento Gets Debt Holder Approval

Sorrento Networks Corp. (Nasdaq: FIBR) said today its convertible debt holders have agreed to support the company's restructuring plan (see Debt Holders OK Sorrento Plan). The plan, outlined last month, will give Sorrento's convertible debt holders and Series A shareholders about 87.5 percent of the company's common stock, on a diluted basis (see Sorrento Restructures, Trims Losses).

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
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