Sensor maker Luminar Technologies files for Chapter 11 bankruptcy, pursues chip business sale

Core Insights - Luminar Technologies has filed for Chapter 11 bankruptcy and is in the process of splitting the company after losing a significant contract with Volvo for its LiDAR technology [3][8] - The loss of Volvo has intensified Luminar's financial difficulties, with a reported revenue of $18.7 million and a net loss of $89.5 million in the third quarter [5] - The company has a debt load of $429 million as of September 30, and it is taking steps to maximize shareholder value through a value-maximizing sale process [5][6][8] Company Actions - Luminar has initiated Chapter 11 proceedings with support from its first lien and second lien noteholders to facilitate the sale of its core LiDAR business and its subsidiary Luminar Semiconductors, Inc. [8] - The company has agreed to sell its chips business to Quantum Computing for $110 million, pending court approval [8] - Luminar is utilizing $25 million of cash on hand to fund the bankruptcy cases and support operations during the sale process [6] Market Context - The decision to enter bankruptcy follows Volvo's announcement on November 11 that it will no longer use Luminar's sensor technology in its EX90 and ES90 vehicles starting this year [3] - Volvo has deferred its decision on including Luminar's technology in future vehicles from 2027 to 2029, further impacting Luminar's business outlook [3][4] - The slow adoption of LiDAR technology in the automotive industry has compounded Luminar's operational challenges [7]