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You would be allowed to play a negate in either color. If they were killing one of your guys and the other guy was still higher numbers then the hero then you wouldn't be able to play a card because it wouldn't be your inititive.
An interrupt or negate card must be played during the Battle Phase. Interrupt cards can only be played if the player has initiative. Initiative may be passed back to you if the character(s) being discarded, captured, or placed back in your hand put you in a situation where you are not winning. An interrupt cannot undo a prevent command if the prevent is preventing the interrupt.
Initiative may be passed back to you if the character(s) being discarded, captured, or placed back in your hand put you in a situation where you are not winning.?
Some of my brain strings must be tangled. I think I need a professional walkthrough of initiative.
If at any time a player is losing via SA, the losing player has initiative to play ONLY an interrupt/negate (unless the SA CBN).