A few days after the insolvent air taxi manufacturer Lilium laid off its employees, there is still an investor. The Bavarian company can now plan the first flight.
Rescued at the last second: The insolvent electric aircraft pioneer Lilium from Bavaria has found an investor and can continue its business. As the company announces, the investor consortium Mobile Uplift Corporation has signed a purchase agreement for the operating assets of the Lilium subsidiaries. The investors come from Europe and North America.
The 750 employees who were laid off on Friday will now be brought back, a spokesman said. “We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors,” said CEO Klaus Roewe. “Completing the transaction in early January will allow us to resume our business.”
Small aircraft can take off and land vertically
Founded in 2015, the company has spent the past ten years developing an electrically powered small aircraft that takes off and lands vertically. The first manned flight was most recently planned for early 2025, and the first delivery to customers was planned for 2026. However, Lilium ran out of money in the home stretch and the company filed for bankruptcy at the end of October.
Hundreds of millions needed to continue business
The creditors' committee of the holding company Lilium has approved the deal with the investors, and closing is expected at the beginning of January, the company said. The entry is subject to the fulfillment of “certain customary conditions precedent”. The purchase price was not mentioned.
Lilium has little debt, but needs several hundred million euros for the first manned flight and certification.
The company, led by former Airbus manager Roewe, has around 700 firm and pre-orders from the USA, Great Britain, France, Saudi Arabia and other countries.
The federal government didn't want to step in
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 bankruptcy. In the first half of 2024 alone, Lilium spent almost 200 million euros. The traffic light coalition in Berlin rejected an application for a federal loan guarantee of 50 million euros.