Last month, the German flying taxi unicorn Lilium was said to be under a major financial crisis. Its main subsidiaries were reported to have filed for bankruptcy. In a recent move, the company laid off 1000 employees and ceased operations.
Now, the company has signed an asset purchase agreement with Mobile Uplift Corporation GmbH, a company set up by an experienced consortium of investors from Europe and North America.
Restructuring with subsidiary asset deals
Mobile Uplift Corporation GmbH intends to acquire the operating assets of the subsidiaries – Lilium GmbH and Lilium eAircraft GmbH. Lilium expects that the Agreement positions its subsidiaries to obtain sufficient funding to restart their business operations.
KPMG engaged with potential investors expressing interest in the assets and business of Lilium GmbH’s subsidiaries. These discussions, reviewed by Lilium’s creditor committee, support the KPMG-led M&A process for financial restructuring. Recently, subsidiary employees were laid off under German law, with Mobile Uplift Corporation GmbH planning to rehire them post-transaction.
What does it mean for Lilium?
The deal is expected to be closed in early January 2025 and is subject to the satisfaction of certain customary conditions precedent, including opening of the proceedings and consent of the creditors committee. Proceeds received from the sale will be utilised according to German Insolvency Law, with no amounts being distributed to Lilium N.V.
Aims to disrupt urban air mobility
Lilium was established in 2015 by Daniel Wiegand, Sebastian Born, Matthias Meiner and Patrick Nathen. In 2019, the company revealed the prototype of its five-seater electric air taxi — Lilium Jet. The company focuses on developing eVTOL aircraft, aiming to create a new mode of urban air mobility.
Having raised over $1 billion in investments, its flagship aircraft, the Lilium Jet combines the convenience of vertical take-off capability with the speed of a jet on intercity regional missions. It features 30 battery-electric motors within the main wings and canards’ flaps, the only moving exterior parts. It features 6 passenger seats, a unique design with 36 electric jet engines, a projected range of about 300 kilometres and top speed of around 190 km/h.
“We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough” Lilium CEO Klaus Roewe said. “Deal closing at the beginning of January will allow us to restart our business.”
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