German electric aviation startup Lilium is facing renewed financial uncertainty after a promised €200 million investment failed to materialize, raising serious doubts about the company’s ability to continue operations. The Munich-based firm, which has been developing an electric vertical takeoff and landing (eVTOL) aircraft, had already been on the brink of insolvency before an investor stepped in on Christmas Eve to offer a last-minute rescue deal. However, recent revelations indicate that the promised funding was not what it seemed, leaving employees and stakeholders in limbo.
Lilium had previously announced that an investor consortium, Mobile Uplift Corporation, had signed a purchase agreement for the assets of its subsidiaries. As part of the deal, the consortium pledged to rehire 750 employees who had been let go due to financial struggles.
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At the time, it was reported that the new backers would inject €200 million into the company, contingent on a restructuring process. However, the reality of the situation has since come into question. By January 6, only an initial €5 million had been transferred by four investors, and they retained the option to withdraw their commitments.
As weeks passed, Lilium’s situation grew increasingly dire. By mid-February, employees were still waiting to receive their salaries from the previous month, and concerns over the company’s cash flow became more pronounced. Investor and shareholder Frank Thelen acknowledged that Lilium was burning through approximately €10 million per month just to sustain its operations, making the promised funding even more critical to its survival.
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Now, internal communications from Lilium suggest that the much-needed financing is not forthcoming. In an email to employees, the company admitted that efforts to secure the funding had fallen apart. “Despite all our efforts, the advanced financing options that were supposed to secure your salary payments and the future of Lilium have unfortunately come to nothing,” the message read. However, management insisted that discussions with investors were still ongoing, keeping hopes alive for a potential turnaround.
Further complicating the situation are revelations about the true source of the promised investment. According to reports from German business publication Manager Magazin, the so-called consortium of investors behind Mobile Uplift Corporation may not have been real. Instead, it was revealed that Slovakian entrepreneur Marian Boček, head of the battery company InoBat, was the primary figure behind the financial commitment. Boček reportedly reached out to Lilium co-founder Daniel Wiegand via LinkedIn after learning about the company’s financial troubles, offering his assistance.
See also: Lilium Files for Insolvency of Key Subsidiaries, Impacting Over 1,000 Jobs Amid Financial Crisis
Despite repeated assurances from Boček that a short-term payment of €150 million was forthcoming, the funds have yet to materialize. Meanwhile, Wirtschaftswoche reported that Boček may only be acting as a trustee and might not have the necessary capital himself. According to the publication, the InoBat founder has not transferred the agreed-upon instalments, possibly because he is waiting for funding from his own financiers.
With no confirmed investment and interim solutions failing to stabilize the company, Lilium now faces an uncertain future. Management remains engaged in urgent talks with potential backers, but unless a significant financial lifeline is secured soon, the pioneering eVTOL startup may struggle to stay afloat.
Source: wiwo.de, mananger-magazin.com