Unilife wins approval for Chap 11 bankruptcy plans
MAY 5, 2017 BY
FINK DENSFORD LEAVE A COMMENT
Unilife (NSDQ:
UNIS) this week won approval from the US Bankruptcy Court for the District of Delaware for its chapter 11 bid and plans for a sale, despite not having completed every step in the process.
In the filing, Judge Laurie Silverstein noted that so far “no trustee, examiner or official committee of creditors holding unsecured claims” has been appointed to the case, but approved the petition to move forward.
Unilife owes approximately $86.7 million, along with fees, expenses and other additional amounts, according to court documents.
The company
originally filed for Chapter 11 bankruptcy April 12, saying it hopes to support the company’s business operations with a $7 million debtor-in-possession financing facility and its remaining cash.
The cash-strapped company owes more than $22 million to Sanofi, Kahle Automation, Morgan Stanley, Hikma Pharmaceuticals and MECO Inc., according to documents that Unilife filed in the U.S. Bankruptcy Court for the District of Delaware.
Unilife reported that it plans to pursue a balance sheet restructuring of its debt and equity and a going concern sale of its assets in an attempt to address its capital structure.
In September last year, an
investigation revealed that former CEO Alan Shortall and ex-chairman Jim Bosnjak used Unilife as a sort of bank to finance Shortall’s move to a new home, personal expenses and loan payments.
