Insolvency announcement in autumn, rescue at Christmas: The year ended for Lilium after all with a hopeful outlook for the future. Because the Munich air taxi manufacturer, which in October 2024 had to file insolvency applications for its two most important subsidiaries Lilium GmbH and Lilium eAircraft GmbH after failed attempts to secure government aid, was able to announce 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 euros in the insolvent company and finance it until market entry. The 750 employees who have already been laid off are also to be brought back into the company.
Creditor committees must still approve the purchase
Behind the investor consortium, according to Süddeutsche Zeitung, are a fund from American venture capital firm Fifth Wall and a European financial investor as the largest investors, with significantly less investment to be made by battery manufacturer Customcells and other creditors and former shareholders of Lilium to participate in Mobile Uplift. In addition, Earlybird and General Capital, who organized the establishment of Mobile Uplift, are also to receive shares. Chinese tech conglomerate Tencent, which had already invested in Lilium, is not participating in further financing of the Munich company.
The transaction is currently expected to close in January 2025 and is subject to the fulfillment of certain customary conditions precedent, as stated in Lilium’s press release. The creditor committees must also still approve the purchase of the two subsidiaries by Mobile Uplift. After closing, the parties intend to implement the planned restructuring of the subsidiaries, which is intended to enable the subsidiaries to end their self-management proceedings.
“Important breakthrough”
“We are very pleased to announce the signing of an investment agreement with a very experienced investor consortium, which represents an important breakthrough,”
says Klaus Roewe, CEO of Lilium.
“Closing the transaction in early January will allow us to restart our business.”
First flight originally planned for early 2025
Lilium was founded in 2015 from the Technical University of Munich and is developing a so-called eVTOL aircraft that takes off and lands vertically with full electric power. In 2021, the startup went public on the US technology exchange Nasdaq through a merger with a Special Purpose Acquisition Company (SPAC).
After the planned first flight of its jet in early 2025, the company expected advance payments and new investments. These were to secure company financing through 2026. At that point, the company would begin delivery of 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 filed for insolvency for its two most important subsidiaries.
