Cash-strapped Lilium has agreed an unlikely last-ditch rescue, selling its German operating units to a consortium of investors just days after terminating the contracts of all its staff.
Lilium had looked set for insolvency following the mass layoffs on 20 December and the apparent inability of any investor to finalise an agreement before the Christmas break.
But the agreement revealed on 24 December sees the “operating assets” of Lilium GmbH and Lilium eAircraft GmbH acquired for an undisclosed sum by a newly incorporated German company called Mobile Uplift Corporation.
Lilium says Mobile Uplift is a “company set up by an experienced consortium of investors from Europe and North America”, but did not provide further details on their identity.
However, German company records disclose the involvement in Mobile Uplift of Philipp Schoeller – the founding partner of Munich-based investment house General Capital Group, or GenCap.
Neither Schoeller nor GenCap were immediately available to discuss the nature of their relationship with Mobile Uplift.
Lilium expects the transaction to close in early January – at that point the thousands of staff laid off on 20 December will transfer across to the new business.
“Subject to the satisfaction of certain conditions… Lilium expects that the agreement positions the subsidiaries to obtain sufficient funding to restart their business operations,” the company says.
Following the deal’s closing, the “parties aim to implement the planned restructuring of the subsidiaries” to enable their exit self-administration insolvency proceedings.
However, it is unclear what that restructuring will consist of, or its impact on future staff numbers.
Since Lilium’s two subsidiaries entered the insolvency process in late October the company has attempted to maintain progress on its Lilium Jet, with a first flight targeted for 2025 ahead of certification in 2026.
However, given the already ambitous timeline, the recent disruption, which is likely to extend into the new year, is almost certain to impact the jet’s development schedule.
