Saturday, July 18, 2009
Luna Innovations Files for Chapter 11
Much-honored Roanoke-headquartered Luna Innovations Inc., which focuses on sensing and instrumentation solutions and pharmaceutical nanomedicines, has asked U.S. Bankruptcy court to estimate the lawsuit claims against it at $1.3 million instead of $36 million in a Chapter 11 filing. That, says company chairman and CEO Kent Murphy, to pay all its creditors at 100 percent. Murphy says Luna expects to continue to operate normally.
"The jury verdict in our dispute with Hansen Medical in April obviously presented a very serious potential negative outcome for Luna as well as its creditors, shareholders and other stakeholders" says Murphy. "In the absence of reasonable settlement of that dispute, we believe that today's filing is in the best interests of Luna and our shareholders, creditors and communities, while providing the first step toward securing a future for Luna.
Murphy says Luna has “filed motions with the court in California to have the award reduced, and Hansen has filed motions to ask the court to increase the award. While we believe we have arguments as to why the award should be significantly reduced, there is no way to predict the outcome of the litigation."
Since the first quarter of 2007, we have grown our revenue base by approximately 20 percent while reducing our baseline expenses and increasing the efficiency of operations by nearly 20 percent. These results are a tribute to our employees and the work they do for our customers every day. We look forward to operating in the normal course of business during our restructuring to meet our customers' needs."