Luminar Files for Bankruptcy After Losing Volvo Contract
Lidar Maker Seeks Asset Sales and Chapter 11 Protection
Key Takeaways:
- Luminar Technologies filed for Chapter 11 bankruptcy in Texas on Dec. 15 after losing a lidar supply contract with Volvo, listing $100 million to $500 million in assets and $500 million to $1 billion in liabilities.
- The company agreed to sell its Luminar Semiconductor subsidiary to Quantum Computing for $110 million cash, subject to higher bids, and is seeking to sell its lidar business.
- Creditors holding most first and second lien notes approved use of about $25 million in cash collateral to fund operations as Luminar restructures following bond defaults and a forbearance agreement.
[Stay on top of transportation news: .]
Luminar Technologies Inc., which manufactures laser-based sensors for cars, shortly after it lost a contract with Swedish carmaker Volvo Car AB.
The Orlando-based company filed for Chapter 11 in the Southern District of Texas on Dec. 15. In its bankruptcy petition, it listed assets of between $100 million and $500 million, and liabilities of between $500 million and $1 billion.Ìý
Before filing for bankruptcy, Luminar struck an agreement with Quantum Computing Inc. to sell it the equity of its subsidiary Luminar Semiconductor Inc. for $110 million in cash, Luminar said in a statement. The deal is subject to higher or better offers as part of the sale process the firm is seeking under section 363 of the Bankruptcy Code, according to Luminar. The company is also looking to sell its lidar business, which makes a type of sensor used in self-driving systems.
To facilitate these transactions, fund the Chapter 11 and aid operations during the sale process, an ad hoc group of creditors representing the company’s 91.3% first lien notes and about 85.9% of its second lien notes has consented to Luminar’s use of about $25 million of cash pursuant to an agreed cash collateral order, according to the statement.Ìý
RELATED:ÌýLuminar Stock Jumps as Viral Video Backs Its Tech Over Tesla
The auto parts maker received notice that Volvo had ended a supply chain relationship for its lidar products, it said in a filing on Nov. 17. Luminar had previously made a claim against Volvo for significant damages and suspended commitments for some of its products for the carmaker, according to the filing.
Luminar entered into a forbearance agreement with a majority of bondholders on Oct. 30 after defaulting on the indentures of its senior notes and its 2030 convertible notes, according to a financial report.
Want more news? Listen to today's daily briefing belowÌýor go here for more info:
