InVivo Therapeutics Shareholders to Receive Higher-Than-Expected Liquidation Payout

In a rare Chapter 11 outcome, InVivo Therapeutics shareholders receive a final distribution of ~$0.60 per share, exceeding estimates, after all creditor claims were satisfied.

The final act of the InVivo Therapeutics Holdings story is now being written. In a departure from the typical outcome in bankruptcy proceedings, where equity holders often face a total loss, shareholders of this former biotechnology firm are set to receive a final distribution that exceeds initial projections. The recent filing of a final report brings the Chapter 11 case to a definitive close.

A Rare Outcome for Equity Holders

For a company navigating Chapter 11 bankruptcy, the complete satisfaction of all creditor claims is an uncommon achievement. This, however, is precisely what the appointed trustee confirmed following the submission of the final report on March 6, 2026. With all senior obligations settled, a residual pool of capital remained for distribution to the company's shareholders.

The payout is now calculated at approximately $0.60 per share. This figure stands in notable contrast to the earlier estimate provided in the disclosure statement, which had projected a distribution of only about $0.42 per share.

Liquidation Follows Clinical Failure

The company's decline was precipitated by a decisive setback in its research efforts. InVivo Therapeutics, once focused on treatments for spinal cord injuries, saw its pivotal INSPIRE 2.0 clinical trial for a specialized implant fail to meet its endpoints. This outcome led to the complete cessation of the company's development programs and its subsequent filing for bankruptcy protection.

A subsequent sale of certain corporate assets to Globus Medical generated only $312,000. The fact that a meaningful sum ultimately remained for shareholders is attributed to the disciplined execution of a court-approved liquidation plan, which received judicial confirmation in the summer of 2024.

With the procedure concluded, InVivo Therapeutics ceases to exist as a public entity. Its shares, which had been trading over-the-counter following their delisting from Nasdaq, now lose their basis entirely due to the complete liquidation. The company's operational business has long been wound down, marking its final disappearance from the financial markets.