Until this morning, it seemed certain that the company would cease operations and lay off all employees numbering over 1,000. By 2015, Munich-based electric aircraft startup E-Fan’s prospects looked bleak: having failed to secure subsequent funding, it was perilously close to insolvency. Just before Christmas, the corporation was forced to terminate employment for all of its staff.
Earlier today, on December 24th, a significant announcement was made regarding the signing of an asset purchase agreement with Cellular Uplift Company. The Cellular Uplift Organization, a coalition of seasoned investors from Europe and North America, has embarked on a mission to acquire the operational assets of subsidiaries Lilium GmbH and Lilium eAircraft GmbH, solidifying its presence in the aviation sector.
Lilium anticipates that the settlement will enable its subsidiaries to secure sufficient funding to resume normal business operations. The proceeds generated by the sale are expected to be applied in accordance with German insolvency regulations, ensuring none of it is distributed to Lilium N.V.
According to earlier reports from German media, KPMG has been engaging in talks with prospective acquirers showing interest in purchasing or acquiring the assets and/or businesses of its subsidiaries. These pursuits have been thought of by Lilium’s creditor’s committee as a part of the KPMG-led M&A course of aimed toward delivering Lilium’s monetary restructuring.
Following the closure, the company’s objective is to deliberately restructure its subsidiaries, thereby enabling them to emerge from self-administration proceedings and operate more effectively in a simplified corporate structure. By December 20, 2024, all subsidiary contracts were formally terminated, in compliance with Germany’s regulatory requirements, as the last of the affected employees received notice of their dismissals.
The anticipated deal closure date is set for early January 2025, subject to the successful fulfillment of customary conditions precedent, including the initiation of procedures and approval from the creditors’ committee. The majority of Lilium’s crew members are expected to have the opportunity to re-apply at the start of the following year.
The terms of the agreement remain confidential, but its significance is evident, given Lilium’s pressing financial requirements. The young company demands several hundred million euros to support its certification process, scale up production, and achieve its goal of executing the maiden manned flight.
Lilium CEO commented:
Currently, Lilium has garnered around 700 pre-orders and agency agreements from prospective customers in the United States, the United Kingdom, and Saudi Arabia. To date, investors have collectively invested approximately €1.5 billion in the company.
