Lilium has appointed accountancy firm KPMG to sell the business, as the cash-strapped air taxi developer seeks new investment.
Bavaria, Germany-based Lilium says the first investor briefings under the merger and acquisition process will “start soon”.
While Lilium will hope a buyer can be found for the entire business, it is possible that only parts of the operation will prove attractive.
Self-administration insolvency proceedings are under way at the company’s two principal German operating units: Lilium GmbH and Lilium eAircraft GmbH, following court approval for the process last week.
This sees existing management remain in place, joined by insolvency professionals to lead the reorganisation and protect the interests of creditors.
The self-administration is expected to last around six to eight weeks, with Germany’s social security system guaranteeing staff wages for a maximum of three months.
Lilium has retained over 1,000 employees at two sites in Germany and continues to progress the final assembly of two Lilium Jets, ahead of a planned maiden flight in the first quarter of 2025.
Achieving that milestone would unlock another source of funding as it would trigger a number of customer payments.
Lilium says it has informed suppliers of the self-administration process “outlining expectations and procedural steps”.
The company says the fuselage and wings of the third aircraft are currently in assembly at aerostructures suppliers Aciturri and Aernnova.
Following the crisis at its two subsidiaries, Dutch-registered parent company Lilium NV will also file for insolvency, the company says.
Trading in Lilium’s shares on the US Nasdaq exchange will end on 6 November following its delisting.
