Company Being Dissolved, Technology Sold

Lily Robotics was at one time one of the drone companies everybody was watching. They had generated some $38.4 million from nearly 61,500 pre-orders of their "toss-and-shoot" flying camera.

Then the bottom fell out, and now the company has filed for bankruptcy.

The website CFO reports that the company has filed for protection so that it can sell its technology in an orderly way, and provided refunds to those who had pre-ordered the drone.

In their court filings, Chief Restructuring Officer Curtis Solsvig said that Lily's goal now is a "competitive auction" after it received interest in the intellectual property for its waterproof flying camera technology. Solsvig said that the company hopes that the actuation can be held soon so as to avoid "the potential loss of value to the [intellectual property] if it goes stale."

Lily says it has arranged for a $3 million bankruptcy loan, subject to court approval, from Spark Capital. The company said that access to post-petition capital is "necessary to enhance the debtor’s liquidity, provide necessary capital during the pendency of this Chapter 11 case, and provide customers, employees, and other interested parties confidence that the debtor has sufficient resources available to organize a successful sale process and be able to refund customers in an orderly manner.”

(Image from file)

FMI: www.lily.camera