Unilife and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-10805. The Company, which manufactures drug delivery systems, is represented by Mark E. Felger of Cozen O’Connor. Unilife’s foreign affiliates in Australia are not included in the filing but are expected to be included in the restructuring or sale.
The Company announced that the bankruptcy was initiated in order to restructure its balance sheet or sell its assets as a going concern in order to better position the business for the future.
Unilife has obtained a commitment for a $7 million debtor-in-possession financing facility underwritten by an affiliate of OrbiMed Advisors. Subject to Court approval, this D.I.P. financing, combined with the Company’s cash from operations, is expected to provide sufficient liquidity during the chapter 11 cases to support continuing business operations and minimize disruption.
John Ryan, C.E.O. of Unilife, comments, “We have conducted an extensive review of alternatives to address Unilife’s capital structure, and we believe pursuing a balance sheet restructuring or sale through chapter 11 is the best path forward at this time. We expect that restructuring Unilife’s balance sheet or the sale of its assets as a going concern through the chapter 11 process will best position Unilife’s business for future success.”
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