Lilium’s last-gasp rescuer Mobile Uplift Corporation (MUC) expects to complete its acquisition of the electric air taxi developer’s operating assets by 20 January, having taken possession of them yesterday.
Detailing the latest moves in a US securities filing on 8 January, parent company Lilium NV said it had also entered “regular insolvency proceedings” on 30 December.
MUC emerged Lilium’s saviour on 24 December, when it signed an agreement to acquire the operating assets of Lilium Gmbh and Lilium eAircraft, two German-based subsidiaires that had been in self-administration since late October.
Investors have since pledged to inject €200 million ($206 million) into MUC to bring the Lilium Jet to market.
Lilium says the “the transfer of possession of the operating assets and the transfer of the operations of the subsidiaries” took place on 7 January, while the “transfer of ownership of the assets” is “expected to occur” on 20 January.
Final sign-off on the deal hinges on the creation of, and approval by, creditors’ committees for the two companies.
FlightGlobal understands that around 800 staff employed by the two businesses began transferring to MUC on 7 January, which could enable a restart of operations next week.
Although Lilium had terminated staff contracts on 20 December as liquidation loomed, it subsequently reversed that decision as MUC’s interest solidified. It is unclear how many of these employees have found work elsewhere in the interim.
However, there is no reprieve for 200 staff made redundant earlier in December as Lilium attempted to cut costs and who will not be taken on by the new operation.
There is also little clarity on when the rescued company will be able to perform the first flight of the Lilium Jet.
Lilium’s most recent plans saw it target a maiden sortie in the first quarter of 2025, but the upheaval of the insolvency process has almost certainly pushed that date back.
Any delay at this stage is likely to have a knock-on effect on the company’s stated goal of achieving certification in 2026.
MUC says it hopes to complete three key milestones by the end of the first quarter: completion of the transaction, restructuring, and the €200 million capital raise.
That figure will be sufficient to take the Lilium Jet to “market readiness” – assumed to mean certification.
Even with the sizeable reduction in headcount, Lilium’s previous cash-burn rates – €232 million in 2023 and €159m in the first half of this year – suggest that €200 million will not be enough to reach service entry.
MUC acknowledges this and says it is seeking additional investment: “The current financing round is only one (central) part on the way to saving Lilium; the acquisition of further partners is also crucial.”
To that end, MUC has “started talks with potential major customers” and begun “negotiations with respected partners from the Gulf States”.
Little is known about the identity of MUC’s backers, with only battery maker Customcells – a supplier to the Lilium Jet – so far confirmed.
However, reports in the German press – not denied by the company – also name venture capital firm Fifth Wall, Skype founder and Lilium board member and investor Niklas Zennstrom of Atomico, 468 Capital, Financial Investments SPC and Earlybird. German investors Jan Beckers, Christian Reber and Frank Thelen – another former Lilium backer.
Currently in charge of MUC is Phillip Schoeller of General Capital – a Munich-based investment fund that co-ordinated the rescue effort. MUC says he will “hand over to a new CEO who will lead the business until the transaction is completed. A CEO with relevant industry experience will then take over.”
Current Lilium chief executive Klaus Roewe has been widely tipped for the top job at MUC.
