Intelligent Finance and Economics APP learned that German air taxi company Lilium NV (LILM.US) stated in a document that its two main subsidiaries will file for bankruptcy in the coming days, causing the company's stock price to plummet on Thursday.

After the news broke, the stock price of this German startup company plummeted by over 60%, with a slight narrowing of losses at midday, but then returned to levels close to the opening decline. The stock closed at a 52-week low on that day, dropping by 61% to around 20 cents per share.

In a document filed with US regulatory institutions, Lilium listed on the Nasdaq stated that it failed to raise enough additional funds to maintain the operation of its two main subsidiaries, Lilium GmbH and Lilium eAircraft GmbH.

Therefore, the heads of these subsidiaries "determined that they are over-indebted... and cannot or will not be able to repay existing debts due in the next few days," Lilium stated.

The company further added: "The management of the subsidiaries has informed the company that they must apply for bankruptcy in accordance with German law, and will file for self-administration proceedings in Germany."

Lilium had attempted to persuade the German federal government to provide national support, but was unsuccessful. Lilium had tried to raise a 50 million euro (54 million US dollars) loan from the treasury, but its request was rejected by legislators.

Overall, Lilium is attempting to raise a convertible loan of 0.1 billion euros. The proposed government assistance will be provided by Germany's state-owned development banks KfW.

After being rejected by the federal government, Lilium continues separate negotiations with the state of Bavaria in southeastern Germany. The company is seeking to raise at least 50 million euros from Bavaria.

However, Lilium stated on Thursday that they have not yet reached a 'principle agreement' with Bavaria.

Lilium stated that if they apply for bankruptcy, subsidiaries usually do not have to repay any pre-application debts, adding that creditors generally 'may not cancel any claims the company may have'.

The subsidiary plans to apply for bankruptcy, which may result in Lilium eventually being delisted from the NASDAQ Global Select Market or having stock trading suspended.