Luminar Technologies files for Chapter 11 bankruptcy protection

Luminar Technologies Inc. (NASDAQ: LAZR) filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate the sale of its business units.

The LiDAR technology company entered bankruptcy with support from approximately 91.3% of its first lien noteholders and 85.9% of its second lien noteholders. The creditor group consented to Luminar's use of approximately $25 million in cash on hand to fund operations during the bankruptcy process.

Prior to the filing, Luminar reached an agreement to sell its Luminar Semiconductors Inc. subsidiary to Quantum Computing Inc. for $110 million in cash, subject to potential higher offers through a court-supervised auction process. The semiconductor unit is not part of the bankruptcy proceedings and its operations are expected to continue unaffected.

The company plans to conduct separate sale processes for both its semiconductor business and its LiDAR operations under Section 363 of the Bankruptcy Code. Court filings indicate the company anticipates completing the transactions by the end of January 2026, subject to court approval.

"Our legacy debt obligations and the pace of industry adoption have challenged our ability to operate the business in a sustainable way," said CEO Paul Ricci in a statement. "After a comprehensive review of our alternatives, the board determined that a court-supervised sale process is the best path forward."

During the bankruptcy proceedings, Luminar expects to continue operating and delivering LiDAR hardware and software to customers. The company filed standard motions seeking court approval to pay employee wages and benefits and honor customer commitments.

Luminar has engaged Weil, Gotshal & Manges LLP as legal advisor, Jefferies LLC as investment banking advisor, and Portage Point Partners LLC as restructuring advisor for the process.

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