Lilium: E-aircraft manufacturer announces insolvency - further search for investors
The electric aircraft pioneer Lilium has announced plans to file for insolvency. The company no longer has the necessary additional funds to continue operations, Lilium reported to the US Securities and Exchange Commission on Thursday. Therefore, the board will file for insolvency due to over-indebtedness or inability to pay in the coming days and will apply for self-administration.
Insolvency proceedings under self-administration often lead to a new investor process and the best possible solution for creditors. However, whether the local court will approve the self-administration request remains uncertain, Lilium informed investors.
In recent years, Lilium has developed an electrically powered small aircraft intended for use on regional routes. This is considered particularly challenging because very powerful batteries are needed. After many test flights, the first manned flight was planned for next spring, and the first delivery to customers for 2026. The company, led by former Airbus manager Klaus Roewe, employs more than 1,000 people and has around 700 firm and pre-orders from the USA, UK, France, Saudi Arabia, and other countries.
Already 1.5 billion euros invested
Customers and investors have already invested 1.5 billion euros in the company listed on the US stock exchange Nasdaq. However, the upcoming approval process and the establishment of production would have cost further large sums. In the first half of 2024 alone, Lilium has spent almost 200 million euros.
An application for a federal loan guarantee of 50 million euros was rejected by the government coalition in Berlin. While the SPD and FDP were mostly in favor, the Greens were against it. Bavaria had already promised a guarantee of 50 million euros - but only on the condition that the federal government also contributes in the same way.
"The initial investments are simply too high to be handled purely by the private sector," explained Lilium CEO Klaus Roewe.
Worldwide, no single aircraft program has been successfully brought to fruition without government support. China and the USA support the development of electric aircraft. In the USA, companies like Joby and Archer are attempting similar projects. According to company information, France had promised Lilium substantial support if it opened a site in southwestern France.
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