Munich-based electric air taxi startup Lilium, which recently ceased operations and laid off 1,000 employees, is set to restructure with new investor backing. The layoff was reported by Gründerszene, with co-founder Patrick Nathen confirming the shutdown on LinkedIn.
Lilium, which raised over $1B before going public, is now set to restructure with new backing. A consortium of European and North American investors have agreed to acquire two of Lilium’s subsidiaries, enabling the Munich-based company to restructure and exit insolvency.
The company has signed an asset purchase agreement with Mobile Uplift Corporation GmbH. This agreement involves the acquisition of Lilium GmbH and Lilium eAircraft GmbH’s operating assets, helping the company to restructure and potentially re-enter the eVTOL market.
Lilium anticipates that the asset purchase agreement will provide its subsidiaries with the necessary funding to restart operations, pending certain conditions. Proceeds from the sale will be allocated according to German Insolvency Law, with no funds distributed to Lilium N.V.
KPMG facilitated discussions with potential investors as part of an M&A process supporting Lilium GmbH’s financial restructuring. The creditor’s committee considered these interests, leading to an agreement aimed at enabling the subsidiaries to exit self-administration proceedings.
On December 20, 2024, the subsidiaries terminated the remaining employee contracts in compliance with German law, with Mobile Uplift Corporation GmbH planning to rehire these employees following the transaction’s completion.
The deal is expected to close in early January 2025, including proceeding approvals and creditor committee consent.
Lilium CEO, Klaus Roewe, says, “We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough. Deal closing at the beginning of January will allow us to restart our business.”
Brief about Lilium
Founded in 2015 by Daniel Wiegand, Sebastian Born, Matthias Meiner, and Patrick Nathen, Lilium is undergoing self-administered insolvency proceedings.
The company’s mission is to develop sustainable, high-speed regional transportation using the Lilium Jet, an all-electric vertical take-off and landing aircraft with zero operating emissions.
Known for its capacity, low noise, and high performance, the Lilium Jet aims to advance the decarbonisation of air travel.
Collaborating with global companies in aerospace, technology, and infrastructure, Lilium has garnered sales and interest across Europe, the US, China, Brazil, the UK, the UAE, and Saudi Arabia.
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