Follows German parliament ́s Budget Committee not approving a loan guarantee that was a condition precedent to a private fundraise
Company was also unable to reach an agreement in principle with Bavarian government to guarantee a €50 million loan
Application for self-administration proceedings driven by insolvency at Lilium subsidiaries in Germany
MUNICH, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Lilium N.V. (Nasdaq: LILM), a leading electric aircraft manufacturer and pioneer in Regional Air Mobility (RAM), today announced that its principal German subsidiaries will apply for self-administration proceedings in the next few days with the competent court in Germany. This follows a lengthy and complex government approval process for a loan from KfW, which failed in the Budget Committee of the German parliament.
Lilium's international competition is receiving grants and loans in the U.S., France, China, Brazil, and the UK. Therefore, German government support was seen by Lilium investors as critical to retain market confidence and potential future investment.
"Our plan was to obtain shareholder investment in a new funding round anchored by a German government backed loan of €100 million," Lilium CEO Klaus Roewe said. "We had already conditionally secured additional private capital to complement the KfW loan. However, the Budget Committee was unable to agree on the loan and Bavaria couldn't do it alone."
German government support of the KfW loan was a closing condition to already committed private funding and without this support Lilium was left with no alternative but to cause the principal German subsidiaries to file for self-administration.
Lilium was also in advanced discussions regarding a French government guarantee of a €219 million loan to finance a battery factory and an assembly line in the Southwest of France. Following the Lilium Jet's planned first flight in early 2025, Lilium anticipated receiving pre-delivery payments and new investment to finance the company into 2026 when the company expected delivery would begin on its current order pipeline consisting of firm orders, reservations, options, and memoranda of understanding for more than 780 Lilium Jets to operators in the U.S., South America, Europe, Asia, and the Middle East.
Supporting the insolvency proceedings is now the top priority for Lilium. Customers, employees and suppliers will be notified by the company as soon as possible.
Self-administration, if and when granted by the court, aims to preserve and continue the business that is the subject of the proceedings. Management would retain control and would continue operating the business under the supervision of a custodian. The procedure is often used to initiate investment by new parties or a process to sell the company's assets and/or business as a whole. In Germany, the procedure is generally perceived as providing an improved chance for a successful in-court business restructuring.
"We deeply regret the insolvency and its consequences for all stakeholders at such a crucial stage of our company's development," CEO Klaus Roewe said. "However, while there is no guarantee for success in insolvency proceedings, we hope that the Lilium Jet will get a chance for a fresh start after the self-administration process is completed."
"We strongly believe that electric flying is our best hope for the decarbonization of aviation," Klaus Roewe added.
Directly impacted by the filing are Lilium GmbH and Lilium eAircraft GmbH. Plans for affected stakeholders and the operational implementation of the necessary measures will be shared in the coming days after the filing and related procedures have been launched.
About Lilium
Lilium (NASDAQ: LILM) is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia, Lilium's 1,000+ strong team includes approximately 500 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium's headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. To learn more, visit .
