Lilium
Assembly Line
German eVTOL maker Lilium finds investor in miraculous Christmas deal
Last month, the German flying taxi unicorn Lilium was said to be under a major financial crisis. Its main subsidiaries were reported to have filed for bankruptcy. In a recent move, the company laid off 1000 employees and ceased operations. Now, the company has signed an asset purchase agreement with Mobile Uplift Corporation GmbH, a company set up by an experienced consortium of investors from Europe and North America. Mobile Uplift Corporation GmbH intends to acquire the operating assets of the subsidiaries – Lilium GmbH and Lilium eAircraft GmbH. Lilium expects that the Agreement positions its subsidiaries to obtain sufficient funding to restart their business operations.
Lilium Board approves application for self-administration of German subsidiaries
Lilium N.V. (Nasdaq: LILM), a leading electric aircraft manufacturer and pioneer in Regional Air Mobility (RAM), announced that its principal German subsidiaries will apply for self-administration proceedings in the next few days with the competent court in Germany. This follows a lengthy and complex government approval process for a loan from KfW, which failed in the Budget Committee of the German parliament.
Lilium’s international competition is receiving grants and loans in the U.S., France, China, Brazil, and the UK. Therefore, German government support was seen by Lilium investors as critical to retain market confidence and potential future investment.
German government support of the KfW loan was a closing condition to already committed private funding and without this support Lilium was left with no alternative but to cause the principal German subsidiaries to file for self-administration.