Insolvency filing in the autumn, rescue at Christmas: The year ended with a hopeful look into the future for Lilium. The Munich-based air taxi manufacturer, which October 2024, the insolvency applications for its two most important subsidiaries Lilium GmbH and Lilium eAircraft GmbH After failing to secure state aid, the company announced the signing of a purchase agreement with Mobile Uplift Corporation towards the end of the same year. Mobile Uplift intends to invest more than €200 million in the insolvent company to finance its market entry. The company also intends to bring back the 750 employees who had already been laid off.
Creditors' committees still have to approve the purchase
According to the investor consortium, Süddeutsche Zeitung A fund from the American venture capital firm Fifth Wall and a European financial investor are the largest investors. Battery manufacturer Customcells and other creditors and existing shareholders of Lilium are expected to participate in Mobile Uplift with significantly less investment. Earlybird and General Capital, which organized Mobile Uplift's development, are also expected to receive shares. The Chinese tech group Tencent, who was already invested in Lilium, however, does not participate in the further financing of the Munich-based company.
Completion of the transaction is currently expected in January 2025 and is subject to the satisfaction of certain customary conditions precedent, as set out in the Press release Lilium's name. The creditors' committees must also approve Mobile Uplift's purchase of the two subsidiaries. After the closing, the parties intend to implement the planned restructuring of the subsidiaries, which should enable the subsidiaries to exit their self-administration proceedings.
“Important breakthrough”
“We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which represents a major breakthrough,”
says Klaus Roewe, CEO of Lilium.
“The completion of the transaction in early January will enable us to restart our business.”
First flight originally planned for early 2025
Lilium was founded in 2015 out of the Technical University of Munich and is developing a so-called eVTOL aircraft with fully electric vertical takeoff and landing. In 2021, the startup went public on the US technology exchange Nasdaq through a merger with a special purpose acquisition company (SPAC).
Following the planned first flight of its jet in early 2025, the company anticipated upfront payments and new investments. These should secure the company's financing until 2026. At that time, the company would begin delivering its current order pipeline. According to Lilium, this includes firm orders, reservations, options, and letters of intent for a total of more than 780 jets from international customers. In October 2024, the air taxi manufacturer will apply for insolvency for its two main subsidiaries.
