(Reuters) – Softbank-backed genetic test maker Invitae 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)
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