December 16, 2025 – American lidar sensor manufacturer Luminar Technologies Inc has filed for bankruptcy shortly after losing a major contract with Swedish automaker Volvo Car AB, according to reports.
The Orlando-based company submitted a Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of Texas on Monday local time. In its filing, Luminar listed assets estimated between 100millionand500 million, while its liabilities were reported to range from 500millionto1 billion.
Prior to the bankruptcy filing, Luminar had reached an agreement with Quantum Computing Inc. to sell its subsidiary Luminar Semiconductor Inc.’s equity for $110 million in cash. The company stated in a press release that this deal would be part of a larger or better offer sought under Section 363 of the Bankruptcy Code during the sales process. Additionally, Luminar plans to divest its lidar business, which produces sensors essential for autonomous driving systems.
To facilitate these transactions, fund the Chapter 11 proceedings, and assist operations during the sale process, an ad hoc group of creditors—representing 91.3% of the company’s senior secured notes and approximately 85.9% of its subordinated secured notes—has agreed to let Luminar access around $25 million in cash under a negotiated cash collateral order, as stated in the announcement.
During the Chapter 11 proceedings, Luminar expects to continue operating its business, collaborating with suppliers and partners to minimize disruptions and maintain deliveries of its lidar hardware and software, the company said in its statement.
The automotive component supplier revealed in a November 17 filing that Volvo had terminated its supply chain partnership for lidar products. The document also showed that Luminar had previously demanded significant damages from Volvo and suspended some product commitments to the automaker.
A financial report indicated that Luminar entered into a forbearance agreement with most of its bondholders on October 30 after defaulting on covenants related to its senior notes and 2030 convertible notes.
