Zila might file Chapter 11 after cutting costs

Zila's worsening financial situation might force the company to file for Chapter 11 bankruptcy, despite a number of cost-saving measures, according to financial statements filed March 17.

Despite cost-reduction strategies, the company’s revenue and cash continue to decline, according to its quarterly filing with the U.S. Securities and Exchange Commission.

Scottsdale-based Zila’s cash and cash equivalents dropped to $2.5 million as of Jan. 31, compared with $3.2 million on Oct. 31 and $4.5 million on July 31.

“In order to continue as a going concern and fund our current level of operations over the next 12 months, we will require additional funds and need to restructure our senior secured convertible notes,” the company stated in its filing.