Automotive supplier Luminar Technologies has brought in a restructuring specialist after falling behind on multiple interest payments, underscoring mounting strain across the automotive supply chain.
The US-based company makes LiDAR sensors used in advanced driver assistance and autonomous driving systems.
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In a filing, the company said it had failed to make interest payments on its first-lien notes due in 2028.
Luminar has appointed Robin Chu, a managing director at advisory firm Portage Point Partners, as chief restructuring officer to steer talks with creditors and oversee a debt workout.
The missed payment on senior debt follows an earlier decision to skip interest due in October on certain second-lien notes.
According to Bloomberg pricing data, Luminar’s first-lien notes were trading at around 63 cents on the dollar.
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By GlobalDataLenders have granted the sensor manufacturer a temporary reprieve, agreeing to a forbearance period that runs to 2 December, with an option to extend.
The company’s financial difficulties are unfolding against a backdrop of broader stress in the automotive supplier sector.
Tariffs and a changing outlook for electric vehicles, particularly following the loss of some subsidies, have weighed on the industry.
Investor sentiment has also been affected by the collapse of auto parts maker First Brands Group, which has prompted closer scrutiny of suppliers’ finances.
Luminar has been hit hard by a rift with its largest customer, Volvo.
According to a filing, the Swedish carmaker informed Luminar it would not use the company’s LiDAR technology on its EX90 and ES90 models from April 2026.
Volvo has since said it has already begun producing those vehicles without Luminar’s sensors.
In response, Luminar has initiated a claim against the carmaker for what it described as “significant damages”.
Alongside Volvo, Luminar has also identified Tesla as a customer in a shareholder letter issued last year.
Earlier in November, the company issued its business update and financial results for the third quarter of 2025.
Luminar reported revenue of $18.7m for the quarter, a 21% increase on the same period a year earlier.
Despite the revenue growth, the company remained loss-making.
It posted a GAAP gross loss of $8.1m and a non-GAAP gross loss of $7.3m for the quarter.
GAAP net loss attributable to common shareholders came in at $89.5m, or $1.29 per share, while non-GAAP net loss was $65.4m, or $0.94 per share.
In light of the ongoing challenges, Luminar has suspended its guidance for the financial year ending 31 December 2025.
