Lilium Secures Investor and Averts Bankruptcy

The German start-up Lilium, known for its innovative flying taxi technology, has successfully avoided bankruptcy by securing a new investor. The Mobile Uplift Corporation GmbH, a consortium of investors from Europe and North America, has agreed to take over the flight taxi developer. A purchase agreement has been signed for the operational assets of Lilium GmbH and its subsidiary, Lilium eAircraft GmbH.

Following a recent wave of layoffs affecting approximately 1,000 employees, Lilium plans to reinstate about 750 of these workers, as confirmed by a company spokesperson. Klaus Roewe, the CEO, expressed optimism about the recent investment agreement with the experienced consortium, with the transaction expected to finalize in early January. The completion of this transaction is subject to the fulfillment of customary conditions, but the deal has already received approval from the creditors' committee.

Although the exact purchase price and details regarding the investors remain undisclosed, Lilium faces significant financial needs. The company requires several hundred million euros to support its certification process, ramp up production, and achieve its goal of conducting the first manned flight. Currently, Lilium holds around 700 firm and pre-orders for its aircraft from customers in the United States, the United Kingdom, and Saudi Arabia. To date, investors have contributed approximately 1.5 billion euros to the company.

Initially, the first manned flight was slated for early 2025, with customer deliveries expected to commence in 2026. However, the company was compelled to file for insolvency in October, following substantial financial challenges. In the first half of 2024 alone, Lilium reported expenditures nearing 200 million euros. A request for a federal credit guarantee of 50 million euros was previously rejected by the government coalition.

In the wake of the recent developments, Lilium is poised to restructure its subsidiaries and conclude the preliminary insolvency proceedings once the transaction is finalized. The company's innovative electric vertical take-off and landing aircraft have garnered significant interest, bringing both challenges and potential for transformation in urban air mobility.

Image Copyright Lilium