LAZR Stock Tanks 55% Following Chapter 11 Bankruptcy Filing

Ahead of the bankruptcy filing, the company agreed to sell Luminar Semiconductor to Quantum Computing in an all-cash transaction valued at $110 million.

• The semiconductor unit is not part of the bankruptcy filing and is expected to continue operating without disruption.
• As part of its restructuring plan, Luminar is exploring the sale of its core LiDAR business.
• Luminar’s lenders have approved the use of about $25 million in cash on hand. 

Shares of Luminar Technologies, Inc. (LAZR) crashed 55% on Monday, after the company filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Texas.

Luminar said the move is supported by a large majority of its lenders, including about 91% of first-lien and 86% of second-lien noteholders.

The Restructuring Plan

As part of its restructuring plan, Luminar is exploring the sale of its core LiDAR business. Ahead of the bankruptcy filing, the company also agreed to sell Luminar Semiconductor to Quantum Computing Inc. (QUBT) in an all-cash transaction valued at $110 million. Quantum Computing said that the acquisition is expected to strengthen its capabilities in advanced optical systems and sensing solutions.

That deal is subject to higher or better offers through a court-supervised sale process. Importantly, the semiconductor unit is not part of the bankruptcy filing and is expected to continue operating without disruption.

To keep the business running smoothly, Luminar’s lenders have approved the use of about $25 million in cash on hand. The company said it plans to continue paying employees, supporting customers, and working with suppliers throughout the process, while aiming to complete the asset sales by the end of January 2026.

Last month, Volvo terminated its lidar supply agreement with Luminar, citing the supplier’s failure to meet contractual obligations. The cancellation had added further pressure on Luminar, which had already defaulted on multiple loans and cut about 25% of its workforce.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits fell to ‘bullish’ from ‘extremely bullish’, amid ‘high’ message volumes. One user stated that they saw this coming.

Year-to-date, the stock has declined by around 92%.

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