Invitae (OTC: NVTA), a leading medical genetics company, announced today that it is building on previous actions to manage costs and improve its business structure by filing for voluntary chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey. Through this filing, the Company intends to safeguard its business, customers, patients and employees while working to execute an efficient and value-maximizing sale process with the support of its senior noteholders.
To ensure the business will operate in the ordinary course during chapter 11, Invitae has sought court approval to fund the case using its cash on hand. The Company intends to transition into chapter 11 without disrupting operations, and is committed to serving its customers and patients and meeting go-forward commitments to employees and vendors. The Company remains steadfast in its commitment to deliver innovative solutions that empower individuals to unlock the value of genomic insights to improve their health.
“We have been working diligently over the past eighteen months to improve our cash position by realigning our portfolio and focusing on our most impactful business lines,” said Ken Knight, president and chief executive officer of Invitae. “These strategic initiatives have accelerated our path to positive cash flow in order to realize our potential as an industry-leading genetics platform. However, we still need to address the company’s debt position through these chapter 11 proceedings. I want to thank our incredibly talented and hard-working employees for their continued focus on our patients and customers.”
Invitae files for chapter 11 with the support of its Senior Secured Noteholders as agreed to in a Transaction Support Agreement (“TSA”) dated February 13, 2024. The TSA includes a commitment from the Senior Secured Noteholders to provide an affirmative vote in support of the Company’s chapter 11 plan, support the Company’s sale process, and agree to the consensual use of the Company’s cash on hand during the cases.
