Lilium sees robust interest from would-be buyers as the sale of the troubled German electric air taxi developer heats up. However, the firm has begun closing subsidiaries outside of its home nation.
Oberpfaffenhofen-based Lilium placed its two main operating businesses – Lilium eAircraft Gmbh and Lilium Gmbh – into a self-administration insolvency process on 28 October due to a cash crisis.
Under German insolvency laws the businesses continue to operate – work on the first conforming Lilium Jet for flight test remains under way – but insolvency specialists are appointed to the board alongside existing management.
Accountancy firm KPMG was on 5 November appointed to handle the sale, a process that is gathering pace.
“We have serious interest and intense discussions and [buyer] visits are ongoing,” says Lilium. However, it declines to comment further.
But the firm faces a race against time to wrap up the sale: German federal employment law pays employee wages for three months during a self-administration, and for Lilium that period ends in December.
In the meantime, units in Switzerland, the UK and the USA have been or are in the process of being closed due to insolvency regulations, with the loss of around 45 posts; the two German businesses continue to employ over 1,000 people.
Lilium is also facing legal action in the USA. Law firm Bragar, Eagel & Squire on 24 November launched a class-action lawsuit alleging that the developer misled investors, overstating its fund-raising prospects.
Filed in the United States District Court for the Southern District of New York, the claim seeks to act on behalf of anyone who acquired shares in Lilium between 11 June and 3 November this year.
Lilium declines to comment on the lawsuit.
