Lilium Files for Insolvency a Second Time After Rescue Attempt Fails
German electric aircraft startup Lilium has filed for insolvency for a second time after a failed rescue attempt. The company announced that it had been unable to secure €200 million in promised funding from an investor consortium.
Financial Options Unfulfilled
"The financing options communicated in the context of a sale of business operations have not materialized," the company said in a brief statement.
Lilium, which was once one of Germany’s most prominent and ambitious startups, had previously been listed on the Nasdaq stock exchange in the US. Over the years, investors had poured €1.5 billion into the development of the company’s electric aircraft. However, the aircraft has yet to reach production maturity.
Previous Insolvency and Rescue
In the autumn, Lilium had filed for insolvency for the first time due to a lack of funds for production. At literally the last minute, on December 24th, an investor consortium led by Mobile Uplift Corporation (MUC) signed a purchase agreement for the operating assets of Lilium’s two subsidiaries, Lilium GmbH and Lilium eAircraft, and pledged €200 million in fresh capital.
Unlikely Rescue, Operations to Cease
According to Lilium, it is highly unlikely that there will be a second rescue attempt following the second insolvency. As a result, the company will now cease operations.
Key Investor’s Contribution Fails to Materialize
Slovakian entrepreneur Marian Bocek had reportedly been a key backer, but his contribution did not come through. According to an earlier report in the German newspaper "Bild," Bocek had intended to invest €150 million.
Planned Uses of Electric Aircraft
Lilium’s e-aircraft, often referred to as "air taxis," were intended for various purposes, including use as air ambulances for medical emergencies.
Investors Involved in Failed Rescue
Several investors, both old and new, were involved in the now-failed rescue attempt, although not all of them were publicly known.
In addition to Bocek, these included German battery developer and manufacturer CustomCells, venture capital fund Earlybird, and financial investment advisory firm GenCap. Bocek is a well-known figure in the electric scene and founded the battery manufacturer InoBat in his native Slovakia.
