Luminar developed longer-range lidar for autonomous automobiles. Supply: Luminar Applied sciences
Luminar Applied sciences Inc. yesterday mentioned that it has voluntarily initiated Chapter 11 proceedings within the U.S. Chapter Courtroom for the Southern District of Texas. The corporate has additionally agreed to promote its Luminar Semiconductors Inc. subsidiary to Quantum Computing Inc. for $110 million.
“These transactions present Luminar with one of the best alternative to maximise worth for all of its stakeholders,” acknowledged Paul Ricci, CEO of Luminar. “Over the previous six months, we’ve taken significant steps to drive operational self-discipline, streamline our price construction, and sharpen our strategic course, however our legacy debt obligations and the tempo of trade adoption have challenged our skill to function the enterprise in a sustainable means.”
“After a complete evaluate of our options, the board decided {that a} court-supervised sale course of is one of the best path ahead,” he added. “As we navigate this course of, our prime precedence is to proceed delivering the identical high quality, reliability and repair our prospects have come to anticipate from us.”
Based in 2012 by then-17-year-old Austin Russell, Luminar constructed sensors from the chip degree up utilizing the 1550nm wavelength, rising the decision, vary, and response time for autonomous automobiles. The Orlando, Fla.-based firm mentioned it developed proprietary lidar {hardware}, software program, semiconductor, and photonics applied sciences in-house to fulfill the efficiency calls for and scalability necessities for transport, safety, and different industrial functions.
Luminar was a vivid level within the lidar panorama
In 2019, Luminar raised $100 million. In 2020, it entered a take care of special-purpose acquisition firm (SPAC) Gores Metropoulos Inc. and raised $170 million. Luminar was valued at about $3.4 billion at the moment.
In 2023, the corporate expanded its choices to incorporate 3D mapping software program and continued to experience excessive.
Whereas Tesla Inc. has targeted on imaginative and prescient-based superior driver-assistance methods (ADAS) and autonomy, it turned one in all Luminar’s largest prospects, reportedly contributing greater than $2 million, or over 10%, of its first-quarter 2024 income.
Disputes hit earnings
In Might 2025, Russell was ousted as CEO after an ethics inquiry by an audit committee of the corporate’s board of administrators. He then tried to purchase the corporate again.
In September, Luminar entered forbearance proceedings. In November, Volvo terminated its contract with the corporate, deciding in opposition to placing its lidar sensors in Volvo EX90 or ES90 mannequin automobiles as a result of the lidar provider allegedly didn’t meet its commitments. Luminar mentioned it was about $505.7 million in debt.
Regardless of its Q3 2025 income being up 21% 12 months over 12 months for a complete of $18.7 million, the corporate reported declining revenue and earnings, with working bills of $66.6 million for the quarter. It suspended its steering for the fiscal 12 months ending Dec. 31, 2025.
LSI operations to proceed regardless of chapter proceedings
Luminar Applied sciences mentioned it has entered Chapter 11 with the assist of about 91.3% of its first lien noteholders and roughly 85.9% of its second lien noteholders. That advert hoc group will facilitate the gross sales of its LiDARCo enterprise and the fairness of the Luminar Semiconductors Inc. (LSI) subsidiary utilizing $25 million money available.
“LSI isn’t a debtor in Luminar’s Chapter 11 circumstances and its operations are anticipated to be unaffected,” mentioned the corporate. The Quantum Computing Inc. (QCi) buy of LSI is topic to raised presents underneath Part 363 of the Chapter Code. Luminar will likely be auctioning its lidar enterprise and LSI fairness to the very best bidder subsequent month.
Through the Chapter 11 circumstances, Luminar mentioned it expects to proceed working and dealing with its suppliers and companions to attenuate disruptions and keep supply of its lidar {hardware} and software program. The corporate has has filed quite a few customary “first day motions” to proceed paying its staff and honor commitments to prospects, distributors, and companions.
Extra details about Luminar’s chapter proceedings is out there from its claims agent, Omni Agent Options. The corporate mentioned it’s nonetheless “analyzing and evaluating potential strategic options and initiatives to enhance liquidity.”
