KING OF PRUSSIA, Pa.,
April 12, 2017 /PRNewswire/
-- Unilife Corporation ("Unilife" and together with its
domestic subsidiaries, the "Company") (NASDAQ: UNIS; ASX: UNS)
today announced that it 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 United States
Bankruptcy Court for the District of Delaware (the "Court"). 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.
The Company has obtained a commitment for a $7 million debtor-in-possession ("DIP") financing
facility underwritten by an affiliate of OrbiMed Advisors.
Subject to Court approval, 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.
"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, Chief Executive Officer 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."
As part of Unilife's comprehensive assessment of options to
address its capital structure, the company, in consultation with
its financial and legal advisors, has determined to simultaneously
pursue both a balance sheet restructuring of its debt and equity
and a going concern sale of its assets.
"This is a critical step in our ongoing transformation to a
successful wearable injector-focused business. Unilife's current
capital structure was put in place to support our business model as
a diffuse drug delivery system company, and our business has
evolved significantly as we have focused on our wearable injector
technology. Now, in light of the terms of the company's debt
obligations and its inability to continue to finance the business
outside of bankruptcy, we need to restructure the company's debt
and equity or sell the assets as a going concern," continued Mr.
Ryan.
"We are fortunate to have a world-class group of employees
focused on developing our industry-leading wearable injectors, and
we are confident that our business can emerge from this process
ready to focus on delivering for our customers and their
patients. We are keenly focused on minimizing disruption to
our customers, partners, and employees and do not expect to
experience any material disruptions during the chapter 11
proceedings."
Contemporaneously with the filing of the voluntary petitions,
the Company filed a number of "first-day" motions with the Court
designed to facilitate a smooth transition into chapter 11 and
minimize any business disruption. Among other things, the
motions request authorization to obtain financing to continue
certain customer and partner programs, and to honor certain
employee compensation and benefit obligations.
SSG Capital Advisors, LLC is the Company's restructuring advisor
and M&A investment banker. Cozen O'Connor is the
Company's restructuring counsel and Duane Morris LLP is the
Company's corporate counsel.
For more information about the chapter 11 cases, including
access to Court documents, please visit:
http://www.omnimgt.com/unilife.
About Unilife Corporation
Unilife Corporation (NASDAQ:UNIS / ASX: UNS) is a
U.S.-based developer and commercial supplier of injectable drug
delivery systems. Unilife has a portfolio of innovative,
differentiated products with a primary focus on wearable injectors.
Products within each platform are customizable to address specific
customer, drug and patient requirements. For more information,
visit www.unilife.com.
Forward-Looking Statements
This press release contains forward-looking statements. All
statements that address operating performance, events or
developments that the Company expects or anticipates may or will
occur in the future are forward-looking statements. These
forward-looking statements are based on management's beliefs and
assumptions and on information currently available to the Company's
management. The Company's management believes that these
forward-looking statements are reasonable as and when made.
However, you should not place undue reliance on any such
forward-looking statements because such statements speak only as of
the date when made. The Company does not undertake any obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law. In addition, forward-looking statements
are subject to certain risks and uncertainties that could cause
actual results, events and developments to differ materially from
the Company's historical experience and the Company's present
expectations or projections. These risks and uncertainties include,
but are not limited to, those described in "Item 1A. Risk
Factors" and elsewhere in the Company's Annual Report on Form 10-K,
those described from time to time in other reports which the
Company files with the U.S. Securities and Exchange Commission, and
other risks and uncertainties, including that the DIP financing
facility may not be approved by the Court or may not be approved on
terms substantially consistent with those contemplated herein; that
the Conditions may not be satisfied; that the DIP financing
facility may be inadequate; that the Company may be unable to enter
into definitive documentation with respect to the DIP financing
facility; the Company's ability to obtain Court approval with
respect to motions and actions in connection with a plan of
reorganization in the Chapter 11 cases; the Company's ability to
operate its business during the pendency of the Chapter 11 cases;
the effects of the filing of the Chapter 11 cases on the Company's
business operations and the upon the interests of various creditors
and stockholders; the length of time the Company will operate as a
debtor in possession in the Chapter 11 cases; risks associated with
motions and other actions that third parties may take in the
Chapter 11 cases, which may interfere with the Company's ability to
develop, secure approval of, and consummate a plan of
reorganization; and the potential adverse effects of the Chapter 11
cases on the Company's financial condition, business operations,
customers and potential customers, employees, liquidity, and
results of operations.
Contact:
Stephanie Walters
717-384-3400
stephanie.walters@unilife.com
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SOURCE Unilife Corporation