Invitae Defends Its Bankruptcy Plan Against Creditor Pushback

An effort by Invitae Corp.'s junior creditors to litigate a disputed pre-bankruptcy transaction would deplete creditor recoveries and lacks a real chance of succeeding, the bankrupt genetics testing company said in court papers.

A committee representing Invitae’s unsecured creditors last week took a step toward filing its own restructuring plan for the company. But the committee’s proposal will be worse for creditors than the plan Invitae has submitted, the company said in a Friday filing in the US Bankruptcy Court for the District of New Jersey.

“The Committee’s proposed plan throws away the guaranteed recoveries in full for the overwhelming ...