Luna Innovations emerges from bankruptcy
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.
Copyright 2010 AP News
