* Settlement includes development and supply agreement
* Luna files reorganization plan with bankruptcy court
* Luna to pay Hansen $5 mln in secured promissory note
* Luna shrs up 45 pct, Hansen up 12 pct in extended trade
Dec 11 (Reuters) - Luna Innovations Inc said it agreed to settle a lawsuit with Hansen Medical Inc and filed its first amended reorganization plan with the bankruptcy court to allow it to emerge from bankruptcy.
Under the reorganization plan, Luna proposes to pay 100 percent of its due and payable valid claims, and Luna's shareholders of common stock will retain their holdings.
Shares of Luna surged as much as 45 percent in after-market trade, while those of Hansen rose 12 percent.
Luna had filed for bankruptcy protection in a Virginia court in July, two months after a jury ordered the company to pay Hansen about $36 million in an alleged breach of contract and misappropriation of trade secrets belonging to Hansen.
According to the settlement agreement, Luna and Hansen will enter into a development and supply agreement to integrate Luna's fiber optic shape-sensing technology into Hansen's medical robotic instruments.
Additionally, Luna will pay $5 million secured promissory note to Hansen over four years and issue shares in the amount equal to about 10 percent of the total outstanding Luna shares.
The settlement also requires Hansen to maintain the equity position for three years.
'This settlement with Hansen Medical clears the largest hurdle on our pathway to emerge from Chapter 11 reorganization and pay our creditors what they are owed,' Kent Murphy, chief executive of Luna, said in a statement.
(Reporting by Krishnakali Sengupta in Bangalore; Editing by Anil D'Silva) Keywords: LUNA/ (krishnakali.sengupta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: krishnakali.sengupta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Luna files reorganization plan with bankruptcy court
* Luna to pay Hansen $5 mln in secured promissory note
* Luna shrs up 45 pct, Hansen up 12 pct in extended trade
Dec 11 (Reuters) - Luna Innovations Inc said it agreed to settle a lawsuit with Hansen Medical Inc and filed its first amended reorganization plan with the bankruptcy court to allow it to emerge from bankruptcy.
Under the reorganization plan, Luna proposes to pay 100 percent of its due and payable valid claims, and Luna's shareholders of common stock will retain their holdings.
Shares of Luna surged as much as 45 percent in after-market trade, while those of Hansen rose 12 percent.
Luna had filed for bankruptcy protection in a Virginia court in July, two months after a jury ordered the company to pay Hansen about $36 million in an alleged breach of contract and misappropriation of trade secrets belonging to Hansen.
According to the settlement agreement, Luna and Hansen will enter into a development and supply agreement to integrate Luna's fiber optic shape-sensing technology into Hansen's medical robotic instruments.
Additionally, Luna will pay $5 million secured promissory note to Hansen over four years and issue shares in the amount equal to about 10 percent of the total outstanding Luna shares.
The settlement also requires Hansen to maintain the equity position for three years.
'This settlement with Hansen Medical clears the largest hurdle on our pathway to emerge from Chapter 11 reorganization and pay our creditors what they are owed,' Kent Murphy, chief executive of Luna, said in a statement.
(Reporting by Krishnakali Sengupta in Bangalore; Editing by Anil D'Silva) Keywords: LUNA/ (krishnakali.sengupta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: krishnakali.sengupta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.