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Investing.com -- Luminar Technologies (NASDAQ:LAZR) stock tumbled 22% after the lidar technology company entered into forbearance agreements with noteholders following missed interest payments on its debt.
The company failed to make quarterly interest payments on October 15 on its 9.0% and 11.5% Convertible Second Lien Senior Secured Notes due 2030. These missed payments became an event of default after a 15-day grace period expired on October 30.
Luminar has secured short-term forbearance agreements with holders of approximately 94.5% of its senior secured notes and 89% of its convertible notes. Under these agreements, noteholders have agreed not to exercise their rights and remedies until November 6. The company stated it expects to negotiate longer-term forbearance agreements before the current ones expire, though it provided no guarantees such agreements will be reached.
In its preliminary third-quarter results, Luminar reported revenue between $18.0 million and $19.0 million for the three months ended September 30. The company disclosed it held approximately $74.0 million in cash and marketable securities as of September 30, while carrying total debt of approximately $429.2 million.
Luminar acknowledged that "substantial doubt exists about its ability to continue as a going concern" given uncertainty regarding its financial condition. The company warned that such doubts could adversely impact relationships with customers, vendors, suppliers and employees.
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