Luminar Technologies Files Chapter 11 Bankruptcy, Sells Semiconductor Unit

Financial Pressures Force Strategic Pivot

Luminar Technologies, a leading autonomous vehicle sensor manufacturer based in Orlando, Florida, filed for voluntary Chapter 11 bankruptcy on December 15, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas. The company simultaneously announced an agreement to sell its semiconductor subsidiary, Luminar Semiconductors Inc. (LSI), to Quantum Computing Inc. for $110 million in cash, subject to higher offers during the court-supervised sale process. The filing marks a dramatic turn for a company once valued at billions on public markets. The restructuring comes with substantial creditor backing, as approximately 91.3% of first lien noteholders and 85.9% of second lien noteholders have consented to the process. These creditors agreed to let Luminar use $25 million in existing cash to fund operations and the sale proceedings. CEO Paul Ricci stated that "legacy debt obligations and the pace of industry adoption have challenged our ability to operate the business in a sustainable way," despite the company's efforts over the past six months to streamline costs and improve operational discipline.

Two-Track Sale Process Underway

Luminar is pursuing parallel sale processes for both LSI and its core LiDAR business, which manufactures sensors for autonomous vehicles. The company has filed motions seeking court authorization to conduct bidding procedures under Section 363 of the Bankruptcy Code. Both transactions are expected to close by the end of January 2026, an aggressive timeline that reflects extensive pre-filing marketing efforts and the need to minimize disruption.

Operations Continue Amid Transition

Throughout the bankruptcy proceedings, Luminar plans to maintain normal operations and continue delivering LiDAR hardware and software to existing customers. The company filed standard "First Day Motions" requesting court permission to pay employee wages and benefits, honor customer commitments, and satisfy post-filing vendor obligations. LSI, which is not a debtor in the bankruptcy case, should see its operations remain unaffected by the parent company's restructuring.

Industry Context and Volvo Loss

The bankruptcy follows the November loss of Volvo as a major customer, when the automaker announced it would discontinue using Luminar's sensors in its EX90 and ES90 vehicle models. That setback compounded existing challenges, including reported net losses exceeding $189 million in the most recent quarter and liabilities estimated between $500 million and $1 billion. The company has engaged Weil, Gotshal & Manges as legal counsel, Jefferies as investment banker, and Portage Point Partners as restructuring advisor to manage the process.