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Luminar Sells Chip Subsidiary as Company Files for Bankruptcy
Luminar seeks to sell its lidar business after losing Volvo contract, listing liabilities up to $1 billion and assets between $100 million and $500 million, court filings show.
- On Dec. 15, Luminar Technologies Inc. filed for Chapter 11 in the Southern District of Texas after losing a lidar supply contract with Volvo Car AB, listing assets between $100 million and $500 million and liabilities between $500 million and $1 billion.
- Following financial strain and an SEC investigation, Luminar Technologies Inc. experienced executive departures and a workforce reduction, and entered a forbearance agreement with bondholders, according to sources.
- The company agreed to a $110 million cash sale of Luminar Semiconductor Inc. to Quantum Computing Inc. and launched a Section 363 court-supervised sale to market its lidar business.
- Luminar Technologies Inc. will use about $25 million of consented cash collateral after an ad hoc creditor group representing 91.3% first-lien and about 85.9% second-lien notes consented, allowing operations to continue during Chapter 11 and minimize supplier and customer disruptions.
- Because Luminar’s lidar appears in vehicles like the Feifan R7, legal disputes and property issues amid bankruptcy could impact automaker supply chains, according to Luminar.
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Luminar Technologies, another firm in the U.S. motor industry and a key Volvo supplier, announced Monday its intention to benefit from Chapter 11, the U.S. Bankruptcy Act, with almost $1 billion (€850 million) in liabilities, and has reactivated fears of financial stress in the car chain. The announcement of its entry into insolvency this Monday has hit its actions hard, which plummets 62% in the Nasdaq technology index at around 18.00 (Spanish …
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Leaning Left2Leaning Right1Center3Last UpdatedBias Distribution50% Center
Bias Distribution
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50% Center
L 33%
C 50%
R 17%
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