Unilife asset sale procedures, $7.5 million DIP loan approved by court

By Caroline Salls

Pittsburgh, May 5 – Unilife Corp. received court approval of the bid procedures for the proposed sale of its assets and final court approval of a $7.5 million debtor-in-possession financing facility underwritten by an affiliate of OrbiMed Advisors, according to orders filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

In its bid procedures motion, Unilife reserved the right to enter into a stalking horse bid for its assets and to pay that bidder a 3% breakup fee and reimburse up to $250,000 of its sale-related expenses if it is not ultimately the high bidder.

The initial overbid amount will be $100,000, plus the amount of the proposed breakup fee and expense reimbursement.

Bids are due by 10 a.m. ET on June 8, and an auction will be held on June 9, if necessary.

The sale hearing is scheduled for June 12.

As previously reported, interest on the DIP facility will accrue at a rate of 10%.

The facility will mature on July 15.

Unilife said this DIP financing, combined with 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.

Medical device manufacturer Unilife is based in York, Pa. The company filed bankruptcy on April 12 under Chapter 11 case number 17-10805.

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