Until this morning, it seemed certain that Lilium would cease operations and let go all of its more than 1,000 employees. Founded in 2015, the Munich based electric aircraft startup, had recently failed to secure follow-on funding, and was reaching the point of insolvency. Just before Christmas, the company had to lay off all its employees.
But earlier today, on December 24th, surprisingly the signing of an asset purchase agreement with Mobile Uplift Corporation has been announced. Mobile Uplift is a company set up by an experienced consortium of investors from Europe and North America, who are intending to acquire the operating assets of the subsidiaries Lilium GmbH and Lilium eAircraft GmbH.
Subject to the satisfaction of certain conditions precedent, Lilium expects that the agreement positions the subsidiaries to obtain sufficient funding to restart their business operations. Proceeds received from the sale will be utilized according to German Insolvency Law, with no amounts being distributed to Lilium N.V.
As previously reported by Germany media, KPMG has been in discussions with potential investors who have indicated interest in the assets and/or business of the subsidiaries. These interests have been considered by Lilium’s creditor’s committee as part of the KPMG-led M&A process aimed at delivering Lilium’s financial restructuring.
Following the closing, the parties aim to implement the planned restructuring of the subsidiaries, which is intended to enable the subsidiaries to exit their self-administration proceedings. On December 20, 2024, the subsidiaries terminated the contracts of their remaining employees in accordance with German law.
Deal closing is currently expected for early January 2025 and is subject to the satisfaction of certain customary conditions precedent, including opening of the proceedings and consent of the creditors committee. Most Lilium team members will receive the opportunity to re-join in the beginning of next year.
Although the exact purchase price and details regarding the investors remain undisclosed, it needs to be a substantial deal, as Lilium faces significant financial needs. The young company requires a few hundred million euros to support its certification process, ramp up production, and achieve its goal of conducting the first manned flight.
Lilium CEO Klaus Roewe commented: “We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough. Deal closing at the beginning of January will allow us to restart our business.”
Currently, Lilium holds around 700 firm and pre-orders for its aircraft from customers in the United States, the United Kingdom, and Saudi Arabia. To date, investors have contributed approximately €1.5 billion to the company.
