Luminar developed longer-range lidar for autonomous autos. Supply: Luminar Applied sciences
Luminar Applied sciences Inc. yesterday mentioned that it has voluntarily initiated Chapter 11 proceedings within the U.S. Chapter Court docket 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 the most effective alternative to maximise worth for all of its stakeholders,” said Paul Ricci, CEO of Luminar. “Over the previous six months, we now have taken significant steps to drive operational self-discipline, streamline our price construction, and sharpen our strategic route, however our legacy debt obligations and the tempo of trade adoption have challenged our means to function the enterprise in a sustainable means.”
“After a complete assessment of our alternate options, the board decided {that a} court-supervised sale course of is the most effective path ahead,” he added. “As we navigate this course of, our high precedence is to proceed delivering the identical high quality, reliability and repair our clients have come to count on 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 autos. 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 purposes.
Luminar was a vivid level within the lidar panorama
In 2019, Luminar raised $100 million. In 2020, it entered a cope with 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 centered on imaginative and prescient-based superior driver-assistance methods (ADAS) and autonomy, it grew to become certainly one of Luminar’s largest clients, reportedly contributing greater than $2 million, or over 10%, of its first-quarter 2024 income.
Disputes hit earnings
In Could 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% yr over yr for a complete of $18.7 million, the firm reported declining revenue and revenue, with working bills of $66.6 million for the quarter. It suspended its steering for the fiscal yr 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 readily available.
“LSI will not be a debtor in Luminar’s Chapter 11 circumstances and its operations are anticipated to be unaffected,” mentioned the corporate. The acquisition of LSI by Hoboken, N.J.-based Quantum Computing Inc. (QCi) is topic to raised gives underneath Part 363 of the Chapter Code. Luminar can be auctioning its lidar enterprise and LSI fairness to the best bidder subsequent month.
Throughout the Chapter 11 circumstances, Luminar mentioned it expects to proceed working and dealing with its suppliers and companions to attenuate disruptions and preserve supply of its lidar {hardware} and software program. The corporate has has filed various customary “first day motions” to proceed paying its workers and honor commitments to clients, distributors, and companions.
Extra details about Luminar’s chapter proceedings is obtainable from its claims agent, Omni Agent Options. The corporate mentioned it’s nonetheless “analyzing and evaluating potential strategic alternate options and initiatives to enhance liquidity.”
