The rescue of Bavarian air taxi startup Lilium is facing significant setbacks, as the planned transfer of assets to the new company remains incomplete, employee salaries for January have not been paid, and some workers have already walked off the job.
According to WirtschaftsWoche (WiWo), the transfer of Lilium’s property and assets to the newly formed Lilium Aerospace GmbH, initially scheduled for January 20, has not yet occurred, despite being considered a “formality.” As a result, the management team currently lacks access to key assets, and essential funds are missing from important accounts. This has led to a delay in salary payments, with employees still waiting for their January pay.
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The report further explained that the delay stems from the renaming of the buyer company from MUC Mobile Uplift Corporation GmbH to Lilium Aerospace GmbH, a change that has complicated the process. An email from January 29 informed staff that salary payments had not yet been initiated, and the sender only discovered the issue on January 27. “Some employees have stopped working and won’t start again until they are paid,” an anonymous worker told WiWo. Others are reportedly planning a protest outside the company’s office in Gauting.
Lilium, which filed for insolvency in October 2024 after failing to secure a guarantee from the federal government and the state of Bavaria, was later rescued by a group of investors, including Earlybird, General Capital, and Customcells. Despite securing 200 million euros in financing, the transition to the new ownership structure has been rocky, with employees still awaiting payment.
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Although the creditors’ committees approved the deal, the full implementation is expected to take until the end of the first quarter. Meanwhile, the 750 employees from the last round of redundancies in December, along with the 200 employees let go earlier, are still technically employed due to their notice periods. The delay in salary payments is expected to result in a seven-figure sum for January alone.
A group of investors had provided a five million euro convertible loan in January to help bridge the financial gap, but it remains unclear whether these funds will reach the appropriate accounts and be sufficient to resolve the ongoing issues.