Biora Therapeutics (BIOR) said Monday it filed a voluntary petition for Chapter 11 in the district of Delaware to strengthen its balance sheet and support the next stage of product development.

The biotech company also said it reached an agreement with some of its pre-petition creditors to secure financing as part of the Chapter 11 sale process.

The drug developer said it has secured a debtor-in-possession financing facility of up to $10.25 million, subject to court approval, to continue normal operations and meet obligations to vendors, suppliers, employees, and other stakeholders. Biora added that it plans to file a motion to approve a competitive marketing and sale process under the Bankruptcy Code to minimize disruptions.

As part of the transaction, the company said its lenders will act as a stalking horse bidder for its assets.

Biora added it expects to continue paying employee wages and vendor obligations during the Chapter 11 proceedings.