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Insys Therapeutics, Inc. (INSY) shares are trading sharply lower following news the company initiated a court-supervised process to facilitate asset sales via Chapter 11 bankruptcy. The company previously warned about a potential bankruptcy on May 10.

Chapter 11 of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

Insys intends to continue operating its business in the ordinary course while it pursues these transactions through the court-supervised sale process.

“After conducting a thorough review of available strategic alternatives, we determined that a court-supervised sale process is the best course of action to maximize the value of our assets and address our legacy legal challenges in a fair and transparent manner,” said CEO Andrew Long in a press release.

Insys shares were trading down 70 percent at 41 cents in Monday's pre-market session.