Lidar maker Luminar Technologies Inc. today filed for Chapter 11 bankruptcy protection amid mounting debt pressures and slower-than-expected adoption of its autonomous vehicle technologies.

The company cited legacy debt obligations and challenging market conditions as key factors behind the filing, emphasizing that the process is designed to maximize value rather than liquidate the business.

According to Bloomberg, the decision to file for Chapter 11 bankruptcy also came shortly after Luminar lost a contract with Swedish carmaker Volvo Car AB.

Founded in 2012, Luminar offers lidar sensors and perception software that support semi-autonomous and autonomous vehicles. The company’s product range includes sensors and software platforms that process data that helps vehicles perceive road conditions, obstacles and other dynamic objects in varied driving environments.

The company’s products can also be used in robotics and adjacent sectors where detailed spatial awareness can drive safety and automation.

As part of the restructuring, Luminar has agreed to sell Luminar Semiconductor Inc. (LSI), its photonics and chip subsidiary, to Quantum Computing Inc. (QCi) for $110 million in an all-cash transaction.

Despite the sale, the process still involves a sales auction under Section 363 of the U.S. Bankruptcy Code, meaning that it’s not guaranteed that Quantum Computing will acquire the assets. Instead, Quantum Computing is acting as the “stalking-horse” bidder by setting the initial price floor for the auction.

In a statement, Quantum Computing said that should it be successful in acquiring Luminar Semiconductor, it will bring LSI components, patents and talent into QCi. In doing so, it says, it will strengthen its supply chain, substantially increase the engineering depth of its workforce, and accelerate the advancement of compact, fully integrated quantum systems for commercial deployment.

“LSI is a high-quality business with significant long-term potential and this transaction with QCi provides the investment and strategic vision needed to realize that potential,” said Luminar Chief Executive Paul Ricci. “By bringing together QCi’s and LSI’s complementary capabilities and engineering strengths, they will be able to bring innovations to market faster and better serve their customers across a broad set of advanced photonics and sensing applications.”

Photo: Luminar