Aviation Insolvent electric aircraft manufacturer can continue
The insolvent electric aircraft pioneer Lilium from Germany has found an investor and intends to continue its business. A consortium of investors has signed a purchase agreement for the assets of Lilium's subsidiaries.
24.12.2024, 12:49
SDA
As the start-up company announced on Christmas Eve, the consortium is called Mobile Uplift Corporation. The 750 employees who were laid off on Friday will be brought back, a spokesperson said.
"We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors," said CEO Klaus Roewe. "The completion of the transaction in early January will enable us to resume our business."
Over the past ten years, the start-up company has developed an electrically powered small aircraft that takes off and lands vertically. The first manned flight was last planned for early 2025 and the first delivery to customers for 2026. However, Lilium ran out of money in the home straight and the company filed for insolvency at the end of October.
Completion expected in January
However, at the last minute before the final end, the management and management consultants KPMG achieved a breakthrough in the search for investors. Mobile Uplift Corporation, founded by investors from Europe and North America, signed a purchase agreement for the business assets of the operating subsidiaries Lilium GmbH and Lilium eAircraft GmbH.
The creditors' committee of the parent company Lilium has approved the deal, which is expected to be finalized in early January. It is subject to the fulfillment of "certain customary conditions precedent".
The purchase price and the investors behind Mobile Uplift were not initially disclosed. Lilium has only a small amount of debt, but needs several hundred million euros to continue business, the first manned flight and certification.
The company, headed by former Airbus manager Roewe, has around 700 firm and advance orders from the USA, the UK, France, Saudi Arabia and other countries. Customers and investors have already invested 1.5 billion euros in the company, which was listed on the US stock exchange Nasdaq until it filed for insolvency.
