The Munich start-up company has developed an electric jet. But after the federal government rejected a state loan guarantee, the young high-tech company is facing bankruptcy.
The electric aircraft pioneer Lilium has announced that it will file for bankruptcy. The company no longer has the necessary additional funds to continue the business, Lilium informed the US Securities and Exchange Commission on Thursday. Therefore, in the next few days the board will file for insolvency due to excessive indebtedness or insolvency and apply for self-administration.
Self-administered insolvency proceedings often led to a new investor process and the best possible solution for the creditors. Lilium informed investors whether the district court would grant the application for self-administration remains an open question.
In recent years, Lilium has developed an electrically powered small aircraft. After many test flights, the first manned flight was planned for next spring and the first delivery to customers was planned for 2026. The company, headed by former Airbus manager Klaus Roewe, employs a good 1,000 people and has around 700 firm and pre-orders from the USA, Great Britain, 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, which is listed on the US stock exchange Nasdaq. But the upcoming approval process and setting up production would have cost additional large sums of money. In the first half of 2024 alone, Lilium spent almost 200 million euros.
However, the government coalition in Berlin rejected an application for a federal loan guarantee of 50 million euros. The majority of the SPD and FDP were in favor, but 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 contributed in the same way.
Missing state aid
Lilium boss Klaus Roewe said: “The initial investments are simply too high to be financed purely by the private sector.” Worldwide, not a single aircraft program has succeeded without government funding. China and the USA supported the development of electric aircraft. According to the company, France had promised Lilium significant funding if it opened a location in southwest France.
Source: Stern
