Consortium To Restructure Company, Exit Insolvency, Resume Operations

In a complete, last-minute turnaround for Lilium, Mobile Uplift Corporation, a consortium of investors from Europe and North America, announced on December 24 it has agreed to purchase the operating assets of both of Lilium’s subsidiaries, Lilium GmbH and Lilium eAircraft GmbH.

The group plans to restructure Lilium and bring it out of insolvency without debt and with its technology intact.

Mobile Uplift said the deals will close in early January and the company will rehire the workers laid off just a few days ago.

Lilium CEO Klaus Roewe said in the announcement, “We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough. Deal closing at the beginning of January will allow us to restart our business.”

As we reported in October, Lilium filed for insolvency, the German equivalent of bankruptcy after failing to secure emergency financing. Lilium had raised more than $1 billion from private investors before executing a reverse merger with SPAC Qell, a special purpose acquisition company that helped Lilium to raise money with an IPO in 2021.

The Munich-based company has an order book for more than 100 of its Lilium Jets, including an order of 100 units worth €1 bilion by Saudi Arabia. Several units were also sold to Volare in the UK, and had been in discussions with a Texas-based brokerage company to bring the Lilium Jet as the first-ever air taxis sold in the U.S.

FMI:  lilium.com/