German eVTOL developer Lilium (Oberpfaffenhofen) announced it filed for insolvency on February 21 after last-ditch funding options to secure its future did not materialise in time.
"While talks about alternative solutions are still ongoing, the chance for restructuring right now is highly unlikely, and therefore, operations will be stopped. Given the situation, this is deeply regretful for all employees, and Lilium Aerospace thanks them for their resilience and dedication," the company said in a statement.
An investment consortium called Mobile Uplift Corporation GmbH had pledged more than EUR200 million euros (USD209 million) to help the company recover from its debtor-in-possession proceedings in October 2024. The investors intended to acquire the operating assets of the German subsidiaries Lilium GmbH and Lilium eAircraft GmbH of Lilium NV, the US Nasdaq-listed parent. Subject to creditor approval and certain customary conditions, the deal was supposed to have closed in early January 2025. On December 20, the subsidiaries terminated the contracts of their remaining employees in accordance with German law. Mobile Uplift Corporation GmbH intended to re-employ them after the closing of the transaction.
In October, the German subsidiaries had filed for self-administration, debtor-in-possession type proceedings under German insolvency law. This came after the German parliament's budget committee blocked a EUR50 million (USD54 million) guarantee for a contemplated EUR100 million (USD104 million) convertible loan from KfW, the German state-owned investment and development bank. In addition, Lilium and the Bavarian state could not agree on the guarantee of EUR50 million.
Lilium, founded in 2015, employed about 500 aeronautical engineers. It initially aimed to launch its fully electric eVTOL flying taxi with the first manned flight in 2025. It planned to use pre-delivery payments and new investments to fund its operations until 2026, when it expected to begin delivering its eVTOL jets. The company had a tentative order pipeline of over 780 jets from operators across the US, South America, Europe, Asia, and the Middle East.
Significant orders included up to 100 jets from Saudia Group, with 50 firm orders and a further option for 50, and with the first deliveries scheduled for 2026. South Florida-based UrbanLink (Miami International) Air Mobility also placed an order for 20 aircraft. Additionally, in 2023, Lilium signed a memorandum of understanding with Lufthansa Group to explore a strategic partnership on eVTOL aircraft operations in Europe.
Meanwhile, rival German eVTOL firm Volocopter remains in pre-insolvency proceedings, with court-appointed administrators still seeking new investment. The company entered provisional insolvency proceedings at the Karlsruhe Local Court on December 26, 2024.
