Lilium Air Taxi Startup: Potential Rescue After Shutting Down

Lilium Revived by Investor Group Following Operational Halt

A group of investors has successfully intervened to save Lilium, a company specializing in electric air taxis, shortly after it suspended operations and initiated layoffs impacting approximately 1,000 employees.

Acquisition by Mobile Uplift Corporation

Mobile Uplift Corporation, a newly formed entity backed by investors from both Europe and North America, has reached an agreement to acquire the operational assets of Lilium’s two key subsidiaries: Lilium GmbH and Lilium eAircraft GmbH. This agreement was formally announced on Tuesday.

Under the terms dictated by German insolvency law, the parent company, Lilium N.V., will not be receiving any financial proceeds from this transaction.

Deal Details and Restructuring Plans

The financial specifics of the deal remain undisclosed, though completion is anticipated in January. KPMG, a leading consultancy firm, facilitated the sale process for Lilium.

Mobile Uplift Corporation has stated its intention to promptly rehire personnel who were previously laid off, following the formal opening of proceedings and the finalization of the acquisition. The extent to which all 1,000 former employees will be reinstated remains uncertain.

Company Response and Future Outlook

When contacted for a statement by TechCrunch, Lilium spokesperson Christine Pierk refrained from offering additional details or responding to inquiries regarding the agreement.

Upon the deal’s closure, the new ownership intends to implement a restructuring of Lilium. This restructuring is designed to enable the company to emerge from insolvency, preserving its core technology and operating without the burden of debt.

Executive Statement

Lilium CEO Klaus Roewe expressed optimism, stating, “We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough.” He further noted that the deal’s completion in January will allow the company to resume business operations.

Previous Funding and Challenges

Prior to its public listing in 2021 through a reverse merger with SPAC Qell on the Nasdaq Exchange, Lilium had successfully secured over $1 billion in funding from private investors.

The company had demonstrated success in attracting clients, notably securing an order from Saudi Arabia for 100 electric aircraft. However, Lilium experienced a rapid depletion of cash reserves as it pursued the development of a vertical take-off and landing (VTOL) aircraft capable of reaching speeds of up to 100 km/h.

Insolvency Filing

In October, Lilium filed for insolvency – equivalent to bankruptcy in the United States – after failing to obtain necessary emergency funding.

Key Takeaways:

• Lilium has been acquired by Mobile Uplift Corporation.
• The deal aims to restructure the company and exit insolvency.
• Rehiring of laid-off employees is a priority.