Lilium’s two principal German operating subsidiaries have filed for insolvency after running out of cash.
Lilium GmbH and Lilium eAircraft GmbH both applied for self-administration at a court in Weilheim in Bavaria on 28 October.
Should the court grant permission for the self-administration to proceed, the existing management will continue to run the companies under the supervision of a custodian, plus two lawyers acting as “chief insolvency officers”.
The objective of the process is to restructure the operations, enabling a sale of the businesses or assets, ensuring the best return to creditors.
Lilium’s current crisis was triggered by the refusal of the German federal government to guarantee half of a total €100 million ($108 million) loan from KfW, the country’s state-owned development bank. It was also unable to raise sufficient external finance.
In a stock exchange filing on 24 October, parent company Lilium NV warned that it could also face insolvency.
Lilium has been developing the electric vertical take-off and landing Lilium Jet, which it hoped would enter service in 2026.
Dominic Perry is Aerospace Editor, Europe contributing extensively to flightglobal.com. Although specialising in the coverage of the helicopter industry, he has written on most topics in aerospace – be they commercial, defence or business aviation. In addition, there has been an increasing focus on the decarbonisation of the industry and zero-emission flight initiatives. He also helps to edit Flight International.View full Profile
