Unilife (NSDQ:UNIS) filed for Chapter 11 bankruptcy today, 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.

“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,” CEO John Ryan said in prepared remarks.  “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 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.

“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,” Ryan said.

“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.”

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.

Earlier this month, the company reportedly laid off 51 employees. UNIS shares are down -20% to 18¢ apiece.