The Munich start-up Lilium has developed an electric jet. But after the federal government rejected a state loan guarantee, the high-tech company is facing bankruptcy.
The Bavarian electric aircraft pioneer and air taxi developer Lilium says it will file for insolvency.
In documents filed with the US Securities and Exchange Commission on Thursday, Lilium referred to the failure to receive government funding. Therefore, in the next few days the board will file for insolvency due to excessive indebtedness or insolvency and apply for self-administration. The “Handelsblatt” first reported on it.
The federal government and the Free State of Bavaria had promised Lilium a financial injection totaling 100 million euros. However, the budget committee in the Bundestag rejected this, and Bavaria then also withdrew its commitment of 50 million euros. The majority of the SPD and FDP were in favor, but the Greens were against it.
Deliveries at Lilium were planned for 2026
Self-administered insolvency proceedings often led to a new investor process and the best possible solution for the creditors. Lilium informed investors whether the Munich district court would grant the application for self-administration remains an open question.
Lilium was founded in 2015 and has developed an electrically powered small aircraft in recent years. 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.
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.
Overview manufacturer
The first air taxis are already taking off
Volocopter, a second German company in the field of these new flight technologies, is also in financial difficulties. Volocopter wanted to use the Olympic Games in Paris this summer to showcase the innovative form of transportation. Ultimately, the company did not receive approval.
Source: Stern
