Luminar Technologies (LAZR.US), a manufacturer of laser sensors for automobiles, has filed for Chapter 11 bankruptcy protection shortly after its supply contract with Swedish automaker Volvo Cars was terminated. At its peak, Luminar was valued at $5 billion.

The Orlando-based company submitted its bankruptcy filing in the Southern District of Texas on Monday, listing assets between $100 million and $500 million and liabilities ranging from $500 million to $1 billion.

Prior to the filing, Luminar announced an agreement to sell its subsidiary Luminar Semiconductor to Quantum Computing for $110 million in cash. However, the deal may be altered if a higher or better offer emerges during the bankruptcy proceedings under Section 363 of the Bankruptcy Code.

The company is also seeking to sell its lidar business, which produces sensors for autonomous driving systems. To facilitate these transactions and fund operations during the bankruptcy process, an ad hoc creditor group has agreed to provide approximately $25 million in cash under an agreed-upon cash collateral order. This group represents 91.3% of the company’s first-lien notes and about 85.9% of its second-lien notes.

Luminar stated that it expects to continue operations during the Chapter 11 process, working with suppliers and partners to minimize disruptions and maintain deliveries of its lidar hardware and software.

**Signs of Trouble** The automotive parts manufacturer disclosed on November 17 that Volvo had terminated its supply agreement for lidar products. Luminar had previously filed a significant loss claim against Volvo and suspended supply commitments for certain products.

Financial reports revealed that Luminar entered into a forbearance agreement with majority bondholders on October 30 after defaulting on its senior notes and 2030 convertible notes.

The company’s troubles became public in May when its founder and CEO departed over "business ethics" issues, exposing the struggles of what was once a top-tier global lidar company. Subsequent reports of mass layoffs and dwindling cash flow further signaled impending collapse. The CFO also resigned late last month, citing a pursuit of "other career opportunities" and denying any disputes over financial conditions or audits—a tacit admission of Luminar’s irreversible decline.

Luminar’s bankruptcy comes just over two years after its $5 billion valuation peak.