Imaging3 Inc., a Burbank based medical technology developer, emerged from Chapter 11 bankruptcy in 2013 after the reorganization plan that would convert the company’s debt to equity was approved by the court. The company faced several setbacks when a minority shareholder opposed the plan and appealed multiple times. On December 17, 2016, a three judge panel in the Ninth Circuit Court of Appeals rejected the dissenting shareholders argument granting Imaging3 Inc.’s request to move forward.
Greenberg Glusker partner Brian Davidoff, who represented Imaging3 was interviewed by the Los Angeles Business Journal on January 18, 2016, “He [minority shareholder] has been very persistent and notwithstanding. Three courts have ruled against him. It’s not that typical but obviously you do see it happen.”
Imaging3 can now convert its debt to equity with its creditors becoming shareholders of the company. The company is also working with the Securities Exchange Commission in an effort to trade its stock publicly and raise additional funds.
“That is the key for them,” Davidoff said. “They’re pretty close to getting all that done.”