Lilium Set To File For Insolvency Protection to Salvage eVTOL Aircraft Plan

Lilium Set To File For Insolvency Protection to Salvage eVTOL Aircraft

Move comes one week after the German parliament blocked a loan guarantee application

Lilium Jet eVTOL aircraft — Lilium is scrambling for new funding to complete development of its six-passenger eVTOL aircraft.

By Charles Alcock • Managing Editor

October 25, 2024

Lilium is about to file self-administration proceedings in a German court, implementing a form of insolvency protection as it scrambles to line up further investment to complete the development of its eVTOL aircraft. The company announced the move on October 24, a week after the German parliament’s budgetary committee rejected its application for a €50 million ($54 million) loan guarantee, which blocked a matching €50 million loan from the state of Bavaria.

In a statement issued late on October 24, Munich-based Lilium indicated that the refusal of the federal government loan guarantee through the KfW state bank undermined plans to raise further funding from private investors. “Our plan was to obtain shareholder investment in a new funding round anchored by the German government backed loan of €100 million,” said Lilium CEO Klaus Roewe. “We had conditionally secured additional private capital to complement our KfW loan. However, the budget committee was unable to agree on the loan and Bavaria couldn’t do it alone.”

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