Unilife has commenced a formal proceeding to restructure its balance sheet or to sell its assets as a going concern in order to better position the business for the future. To facilitate this restructuring or sale, the company filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

The company has obtained a commitment for a $7 million debtor-in-possession financing facility underwritten by an affiliate of OrbiMed Advisors. This DIP financing, combined with the company’s cash from operations, is expected to provide sufficient liquidity during the Chapter 11 cases to support the company’s continuing business operations and minimize disruption.

SSG Capital Advisors is the company’s restructuring advisor and M&A investment banker. Cozen O’Connor is the company’s restructuring counsel and Duane Morris is the company’s corporate counsel.

“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,” said John Ryan, CEO of Unilife. “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.”

Unilife’s foreign affiliates in Australia are not included in the filing but are expected to be included in the restructuring or sale. Unilife’s operations will remain ongoing during the Chapter 11 process.

Unilife is a King of Prussia, PA-based developer and commercial supplier of injectable drug delivery systems.