Luna Innovations Files for Chapter 11 Reorganization
17 Julho 2009 - 9:00AM
Business Wire
Luna Innovations Incorporated (NASDAQ:LUNA), a company focusing
on sensing and instrumentation solutions and pharmaceutical
nanomedicines, today voluntarily filed for reorganization under
Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court
for the Western District of Virginia. The company emphasizes that
it expects to continue to operate normally to serve customers,
develop and manufacture products, and maintain employment at all
facilities during the restructuring process.
�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,� said Kent Murphy, chairman and chief executive
officer. �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. We intend to build on
our history of innovation and product development, outstanding
products, and excellent customer service.
�As previously reported, the jury in our litigation proposed an
award to Hansen in excess of $36 million,� Murphy added. �Since
then, we have 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.�
As part of its filing for reorganization, Luna is requesting the
Virginia court to estimate Hansen�s claims in litigation at less
than $1.3 million. If that motion is successful before the court,
the company believes the proposed reorganization plan would result
in creditors receiving 100 percent of their allowed claims.
�The plan that we proposed and filed today, if confirmed by the
court, would pay our creditors on their valid claims and leave our
current shareholders in place while allowing us to continue to
build upon the recent achievements of this company and the
potential of our product pipeline,� Murphy said. �It was after long
and careful consideration with our board of directors and outside
advisors that we concluded this was the right move. I believe that
the actions taken today represent the best path for Luna and all of
our stakeholders.�
Murphy stressed that Luna�s business has continued to make
progress in recent quarters despite 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,� he
said. �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.�
Luna will hold a conference call and webcast for investors at
2:00 p.m. (EDT) today. To participate by telephone, the domestic
dial-in number is 1. 800.299.7089 and the international dial-in
number is 1. 617.801.9714. The participant access code is 10926194.
Investors are advised to dial in at least five minutes prior to the
call to register. The web cast will be archived on the company�s
website at www.lunainnovations.com under �Investor Relations,
Webcasts and Presentations� for 30 days following the conference
call.
About Luna Innovations:
Luna Innovations Incorporated (www.lunainnovations.com ) is
focused on sensing and instrumentation, and pharmaceutical
nanomedicines. Luna develops and manufactures new-generation
products for the healthcare, telecommunications, energy and defense
markets. Its products are used to measure, monitor, protect and
improve critical processes. Through its disciplined
commercialization business model, Luna has become a recognized
leader in transitioning science to solutions. Luna is headquartered
in Roanoke, Virginia.
Forward Looking Statements:
This release includes information that constitutes
�forward-looking statements� made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995,
including statements regarding, but not limited to, expectations
(i) regarding the company�s continued viability and operations
following filing for Chapter 11 reorganization; (ii) regarding the
impact on the filing for reorganization on the stakeholders of the
company, including shareholders, creditors and communities; (iii)
that the jury award to Hansen Medical, Inc. may be reduced through
litigation or an estimation hearing before the bankruptcy court;
(iv) as to the effects of the company�s proposed plan; (v)
regarding the company�s continued ability to grow its operations
and (vi) regarding development of the company�s product pipeline.
The company attempts, whenever possible, to identify
forward-looking statements by words such as �intends,� �will,�
�plans,� �anticipates,� �expects,� �may,� �estimates,� �believes,�
�should,� �projects,� or �continue,� or the negative of those words
and other comparable words. Similarly, statements that describe the
company�s business strategy, goals, prospects, opportunities,
outlook, objectives, plans or intentions are also forward-looking
statements. Actual events or results may differ materially from the
expectations expressed in such forward-looking statements as a
result of various factors, including risks and uncertainties, many
of which are beyond the company�s control. Factors that could cause
actual results to differ materially from the expectations expressed
in such forward-looking statements include, but are not limited to,
the possibility that the company�s reorganization plan will not be
approved or will be approved in a substantially different form; the
company�s difficulties or inability to obtain sufficient financing
to support its continued operations; the company�s ability to
reduce or eliminate the impact of its litigation with Hansen
Medical, Inc.; the company�s ability to continue as a going
concern; the company�s ability to develop its business; the
company�s ability to commercialize its technology and develop new
and profitable products; and the risks inherent in current or
future litigation proceedings. Additional factors that may affect
the future results of the company are set forth in the company�s
quarterly and annual reports on Form 10-Q and Form 10-K,
respectively, and other filings with the Securities and Exchange
Commission (�SEC�), which are available at the SEC�s website at
http://www.sec.gov, and at the company�s website at
http://www.lunainnovations.com. These risk factors are updated from
time to time through the filing of periodic reports with the SEC.
The statements made in this press release are based on information
available to the company as of the date of this release and Luna
Innovations undertakes no obligation to update any of the
forward-looking statements herein after the date of this press
release.
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