Unilife creditor Kahle seeks investigation of officers and directors

By Caroline Salls

Pittsburgh, May 18 – Unilife Corp. unsecured creditor Kahle Automation, SRL asked the U.S. Bankruptcy Court for the District of Delaware to appoint an examiner to investigate alleged potential misconduct and mismanagement on the part of the company’s officers and directors, according to a motion filed May 18.

Kahle said Unilife’s Securities and Exchange Commission filings over the course of the past year reveal that the company became aware during early 2016 that some former officers and directors had been involved in mismanagement and potentially criminal misconduct related to financial transactions they coordinated and completed while in positions of leadership at Unilife.

Specifically, Kahle said SEC filings state that these transactions, at least in part, “involved the improper commingling of Unilife’s funds with personal funds.”

“Kahle believes that a thorough, independent investigation of any fraud, neglect, misconduct, mismanagement, etc., on the part of debtors’ officers and directors is in the best interest of the creditors in these jointly administered bankruptcy cases,” the motion said.

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

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