Lilium’s two principal German operating subsidiaries have filed for insolvency after running out of cash.
Lilium GmbH and Lilium eAircraft GmbH both applied for self-administration at a court in Weilheim in Bavaria on 28 October.
Should the court grant permission for the self-administration to proceed, the existing management will continue to run the companies under the supervision of a custodian, plus two lawyers acting as “chief insolvency officers”.
The objective of the process is to restructure the operations, enabling a sale of the businesses or assets, ensuring the best return to creditors.
Lilium’s current crisis was triggered by the refusal of the German federal government to guarantee half of a total €100 million ($108 million) loan from KfW, the country’s state-owned development bank. It was also unable to raise sufficient external finance.
In a stock exchange filing on 24 October, parent company Lilium NV warned that it could also face insolvency.
Lilium has been developing the electric vertical take-off and landing Lilium Jet, which it hoped would enter service in 2026.
