Lumenyte International of Irvine, CA, filed a voluntary petition in California, under Chapter 11 of the United States bankruptcy code, on January 5.
According to a statement released by the plastic fiber-optics maker, "The case was filed after Lumenyte's secured lender, Imperial Bank, declared a default, claiming that Lumenyte's tangible net worth did not increase at the rate called for under Imperial's loan documents. Imperial subsequently moved for the appointment of a state court receiver which compelled Lumenyte to institute the Chapter 11 proceeding." The filing will allow the firm to restructure financial affairs through a reorganization, though company officials note that the company was profitable during the fiscal year, as a result of prior internal restructuring which began around January 1999.
"We all feel positive that Lumenyte will emerge from Chapter 11 and continue to provide customers with the best in fiber-optic lighting. Research and development is not being abandoned and there are several initiatives being worked on which hold great promise for the future of the industry and Lumenyte," says Christine Bassett, Lumenyte's director of sales development.