Lilium, the German electric flying taxi developer, has been granted approval by the Weilheim Local Court to undergo restructuring under self-administration, following its recent insolvency filing.
This move aims to preserve the company, with management retaining control over operations during the process, supported by restructuring experts. However, the success of this strategy largely depends on Lilium securing new investors, with KPMG now tasked with finding potential buyers or financial backers.
The company, which had long sought state support from the German government and the state of Bavaria, was unsuccessful in obtaining funding, leading to the insolvency filing last week.
Despite the financial setbacks, Lilium continues to progress in the development of its electric vertical takeoff and landing (eVTOL) aircraft, with the first two Lilium jets in final assembly. The company has more than 780 firm orders, reservations, options, and letters of intent for the jets across various regions, including the U.S., Europe, and the Middle East.
Lilium has retained over 1,000 employees working toward the goal of achieving the first manned flight of its aircraft. In the wake of the restructuring, employees have been informed of a pay freeze. The company has also engaged with its suppliers, outlining the steps to proceed during the insolvency process.
The court appointed experienced restructuring lawyers Prof. Dr. Gerrit Hölzle and Dr. Thorsten Bieg as Chief Insolvency Officers for Lilium’s German subsidiaries. Additionally, Ivo-Meinert Willrodt, an expert in insolvency law, was named provisional administrator to safeguard creditors’ interests.
Lilium CEO Klaus Roewe expressed confidence in the company’s ability to recover, with a focus on securing new investment to support the development of the Lilium Jet.
