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Luminar Technologies Inc., a developer of lidar systems used to guide autonomous vehicles, has entered Chapter 11 bankruptcy protection in Texas, weighed down by at least $500 million in debt and preparing to put its assets on the auction block.

A Balance Sheet Under Pressure

In its bankruptcy petition filed Monday, the Orlando, Florida–based company estimated liabilities between $500 million and $1 billion, compared with assets ranging from $100 million to $500 million. The filing sketches a company boxed in by its balance sheet even as its technology remains central to the self-driving car race.

Alongside the court filing, Luminar announced plans to sell the equity of its nondebtor chip unit, Luminar Semiconductor Inc., for $110 million, while simultaneously seeking a buyer for its core lidar business — the laser-based sensing technology that allows autonomous vehicles to “see” the road ahead.

Strategy to Salvage Value

“These transactions provide Luminar with the best opportunity to maximize value for all of its stakeholders,” CEO Paul Ricci said in a statement, framing the sales as a controlled landing rather than a crash.

Creditors Line Up Behind the Plan

According to the company, the restructuring blueprint has the backing of 91.3% of first-lien noteholders and 85.9% of second-lien noteholders. That ad hoc lender group has agreed to allow Luminar to tap approximately $25 million in existing cash to bankroll the Chapter 11 process, a show of confidence that could smooth the road through bankruptcy.

What Happens Next

The case has been assigned to U.S. Bankruptcy Judge Christopher M. Lopez in Texas federal court.

Luminar is represented by Stephanie N. Morrison and Ronit J. Berkovich of Weil Gotshal & Manges LLP.

With Luminar Hits Chapter 11, the once high-flying lidar innovator now faces a defining moment — a race against time to turn cutting-edge technology into cash before the road runs out.