Molecular and sensing tech maker Luna Innovations emerges from Chapter 11 bankruptcyBy AP
Tuesday, January 12, 2010
Luna Innovations emerges from bankruptcy
ROANOKE, Va. — Luna Innovations Inc., which develops molecular and sensing technologies, says it has emerged from Chapter 11 bankruptcy protection after filing in July 2009.
Shares of Luna rose 77 cents — or 21 percent — to close at $4.43.
A federal bankruptcy judge confirmed the company’s reorganization plan Tuesday at a hearing in Roanoke.
The plan includes the settlement of a lawsuit between Luna and Hansen Medical Inc. Under the settlement, Luna would pay $5 million and give Hansen about 1.3 million shares of common stock.
Luna’s creditors also will receive a 100 percent recovery on valid claims and that current shareholders will retain their shares.
Luna Chairman and CEO Kent Murphy said Monday in a conference call with investors that the Roanoke-based company will emerge from Chapter 11 as a stronger company.