Invitae Can Use Cash Collateral For Speedy Ch. 11

Bankrupt genetic testing company Invitae Corp. on Thursday got the approval of a New Jersey bankruptcy court for routine first-day motions as it moves toward a planned April auction of its assets.

U.S. Bankruptcy Judge Michael Kaplan okayed first-day motions and the use of cash collateral for California-based Invitae, which hit bankruptcy Wednesday with nearly $1.5 billion in debt and a transaction support agreement in hand with Deerfield Partners, its largest secured noteholder, to find a buyer. Deerfield has also agreed to be paid after certain unsecured creditors of Invitae’s debtor subsidiaries as part of the deal.

Invitae is represented by Michael D. Sirota, Warren A. Usatine, Felice R. Yudkin and Daniel J. Harris.