Summary
- Lilium filed for insolvency after facing obstacles with financial support in Germany
- The company aims to achieve commercial flight and certification through restructuring and fresh investment
- KPMG will conduct an M&A process for Lilium
- The company’s management remains in charge during restructuring with the support of restructuring experts
- Lilium has over 780 orders but trading of shares and warrants will be suspended, with the possibility of trading over-the-counter coming up
Article
Lilium, the electric vertical takeoff and landing (eVTOL) aircraft startup, recently filed for insolvency after facing obstacles in securing financial support in Germany. Despite this setback, the company is still aiming to achieve commercial flight and certification. KPMG has been selected to conduct an M&A process to seek fresh investments to support the path to certification and entry into service. The management team remains in charge and is working with restructuring experts to navigate the proceedings.
In the midst of the insolvency proceedings, Lilium’s management team remains focused on preserving the business and leading it through the restructuring process. Two experienced restructuring lawyers have been appointed as Chief Insolvency Officers to oversee the reorganization of the company’s German subsidiaries. Additionally, a provisional custodian has been appointed to protect the interests of creditors during the proceedings. Despite these challenges, the business continues to operate, with over 1,000 employees working towards program milestones.
Lilium has received over 780 orders from across Europe, the US, South America, Asia, and the Middle East, indicating significant interest in their electric jets. The company is hopeful that these eVTOL jets will eventually be built and delivered. The trading of Lilium’s shares and warrants on NASDAQ has been suspended, with the possibility of trading over-the-counter, which could impact trading volumes and share prices. The company’s listed entity in the Netherlands filed for insolvency on November 4, 2024.
As Lilium proceeds with its restructuring and insolvency proceedings, the company remains optimistic about the future and is pushing forward with the production of its electric jets. Despite the challenges faced, the commitment to achieving commercial flight and certification remains strong. With the support of restructuring experts and potential investment, Lilium is working towards emerging from insolvency and continuing its journey in the eVTOL aircraft industry. Stay tuned for further updates on the company’s progress.
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