Lilium, the manufacturer of electric vertical take-off and landing (VTOL) aircraft, whose fate seemed sealed with insolvency, has found an investor at the last minute, just in time for Christmas. A "Mobile Uplift Corporation" will allow the company to take on 775 of the employees who had already been laid off.
This would mean the tilting aircraft would be out of commission for the time being. Lilium, founded in 2015, is prominently located in Gauting near Munich, within sight of the German Aerospace Center's (DLR) satellite control center in Oberpfaffenhofen, on the opposite side of the special airfield there, which was also used by Dornier for a long time. Wake vortex tests with the A380 were also conducted at the airfield. DLR research aircraft take off from here to explore the atmosphere.
At the helm of KlausLiliumis Roewe, who has enjoyed a 30-year career at Airbus, where he led the A320 family and A320neo programs in the last decade, transforming them into some of the most successful commercial aircraft of recent decades. Since September 2021, also prominent figures such as former Airbus SE CEO Tom Enders (who held CEO positions from 2007 to 2019), as well as executives from the European Aeronautic Defence and Space Company (EADS).
Oldacquaintances
According to company information, a purchase agreement for financial restructuring has now been "last minute" with Mobile Uplift Corporation (MUC) GmbH, a company founded by an experienced consortium of investors from Europe and North America. Mobile Uplift Corporation GmbH intends to acquire the operating facilities of its subsidiaries Lilium GmbH and Lilium eAircraft GmbH.
Relief: CEO K. Roewe
Subject to the fulfillment of certain conditions precedent, Lilium expects the agreement to provide its subsidiaries with sufficient funds to resume their business operations. The proceeds from the sale will be used in accordance with German insolvency law.
The auditing and management consulting firm KPMG had held discussions with potential investors who expressed interest in the assets and/or business of the subsidiaries. These interests were taken into account by the creditors' committee of Lilium GmbH as part of the financial restructuring process led by KPMG.
Factory premises near Oberpfaffenhofen. Photo: Lilium
The transaction is currently expected to close in early January 2025 and is subject to the fulfillment of certain customary closing conditions, including the commencement of insolvency proceedings and approval by the creditors' committee.
"We are very pleased to announce the signing of an investment agreement with a highly experienced consortium of investors, which represents a major breakthrough," said Lilium CEO Klaus Roewe. "The closing of the transaction in early January will allow us to resume our business."
Former Airbus CEO T. Enders
The company's original mission is to create a sustainable and accessible high-speed regional transportation system for people and goods. With the Lilium Jet, a fully electric vertical takeoff and landing (VTOL) jet offering leading capacity, low noise, and high performance with zero operating emissions, Lilium aims to accelerate the decarbonization of air travel.
Difficult terrain
In cooperation with leading companies in the aerospace, technology and infrastructure sectors, and with announced sales and expressions of interest in Europe, the United States, China, Brazil, Great Britain, the United Arab Emirates and the Kingdom of Saudi Arabia, Lilium was founded in 2015 with its headquarters and production facilities in Munich.
View into the cockpit. Photo: Lilium
Meanwhile, several competitors in the future urban transport sector, primarily using quadcopters and octocopters, have already disappeared from the scene or are at least facing serious difficulties. The licensing requirements and administrative hurdles surrounding future air traffic management systems for crewed, uncrewed, and autonomous aircraft operating in lower airspace are making matters even more difficult.
