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Luminar Files for Chapter 11 to Pursue Court-Supervised Sale of Core Businesses

Mounting debt plus slow lidar adoption pushed the company to seek a court-run sale.

Overview

  • Luminar initiated voluntary Chapter 11 cases in the Southern District of Texas and plans to keep operating and delivering lidar hardware and software during the process.
  • Before the filing, Luminar agreed to sell its LSI semiconductor unit to Quantum Computing Inc for $110 million in cash, and LSI is excluded from the bankruptcy cases.
  • Court papers list $100–$500 million in assets against $500 million–$1 billion in liabilities, with support from about 91.3% of first-lien and 85.9% of second-lien noteholders.
  • The company’s stock slid about 61% on the news, trading near $0.33–$0.35 to a record low.
  • The bankruptcy follows layoffs, executive departures, loan defaults, an SEC inquiry, and legal disputes including Volvo’s cancellation of a long-term contract.