Bankruptcy

Luna Innovations Seek Chapter 11 Bankruptcy Protection

By writer

Joining many of the other financially strung companies in the United States, Luna Innovations has filed for bankruptcy protection under the Chapter 11 guidelines. The filing is reported to be the result of a legal dispute the company had with Hansen Medical back in April. The result of the conflict has Luna owing over $36 million in damages, a devastating blow to the technological development company.

This court ruling not only jeopardizes the company as a whole, but also threatens the shareholders and creditors involved. The chairman and chief executive officer for Luna, Kent Murphy, stated in a press release last month, ?in the absence of a reasonable settlement of that dispute, we believe today?s (bankruptcy) filing is in the best interests of Luna.?

However, it should be noted that Luna is not throwing in the towel. Kent Murphy was also cited as saying filing bankruptcy was meant to be ?the first step toward securing a future for Luna.?

It?s unfortunate that bankruptcy has a negative stigmata attached to it, since the reason behind its creation is to help companies and individuals out of tough financial situations. It?s very possible that Luna Innovations could successfully bounce back from their bankruptcy.

This is also true for personal bankruptcies. If you?ve been pushed against a wall because your debts have gotten out of hand, there is help available. A chapter 7 or chapter 13 bankruptcy may be right for you. Get a free legal evaluation with a Legal Helpers lawyer today.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on August 03, 2009 (boomark / email).