Genetic test maker Invitae files for bankruptcy protection in US (updated)
14/02/2024 04:03
(Updates with details from statement in paragraphs 2 and 5,
adds details from bankruptcy filing in paragraphs 3-4,
background in paragraph 6)
Feb 13 (Reuters) - Softbank-backed 9434.T genetic test
maker Invitae NVTA.PK said on Tuesday it has filed for
voluntary Chapter 11 protection in a U.S. bankruptcy court and
intends to pursue a sale process.
To ensure its business operates as usual, Invitae has
requested court approval to fund its bankruptcy protection by
using cash on hand, the company said, adding that it intends to
transition into Chapter 11 without disrupting operations.
The company said in a court filing that its estimated assets
were in the $500 million - $1 billion range, while its
liabilities were in the $1 billion - $10 billion range.
Invitae, which provides genetic testing services for various
diseases and cancers in and outside the United States, added in
the filing that it had around 1,000-5,000 creditors.
The company has Kirkland & Ellis LLP as legal counsel,
Moelis & Company LLC as investment banker, and FTI Consulting,
Inc. as the financial and communications advisor to move forward
with its sale process and strategic initiatives, it said in its
statement.
In a regulatory filing last November, Invitae had flagged
concerns about its ability to stay afloat, saying it needed to
secure additional funding to support ongoing operations or to
address its debt obligations.
(Reporting by Gursimran Kaur in Bengaluru; Editing by Sherry
Jacob-Phillips and Janane Venkatraman)
((GursimranKaur.Mehar@thomsonreuters.com;))