Shares of LiDAR company Luminar Technologies (LAZR) popped by more than 17% in yesterday's trading session after the company recently revealed that it has entered into a forbearance deal with a group of its debt holders. After failing to make interest payments on its 9.0% Convertible Second Lien Senior Secured Notes due 2030 and 11.5% Convertible Second Lien Senior Secured Notes due 2030, the noteholders have given their nod to not exercising their rights and remedies until Nov. 6.
And since Nov. 6 is at the doorstep, with the company's financial situation not expected to show any improvement, the only remedy left for Luminar is to renegotiate the terms with this group of debt holders. Though the management expects to work out longer forbearance agreements, the same confidence cannot be evoked from its track record.
