Insolvency: self-administration of German subsidiaries
Lilium, a German flying taxi startup, is facing insolvency despite raising over $1.1 billion since 2021. Known for its electric vertical take-off and landing (eVTOL) aircraft, Lilium aimed to revolutionize regional air mobility but encountered a series of funding setbacks. Recently, Germany’s Budget Committee rejected a crucial €50 million loan request from KfW, a government bank, and the Bavarian government declined to cover it alone. This decision undermined Lilium’s plans to secure further private investment that depended on government support, leading the company to file for self-administration in Germany to manage insolvency proceedings.
Lilium was banking on additional international financing, including a potential €219 million French government loan to support a battery factory and assembly line in France. The company expects its first commercial flights in 2026 and aims to start with pre-delivery payments after its initial test flight, scheduled for early 2025. Lilium has accumulated over 780 jet orders from operators across the U.S., South America, Europe, Asia, and the Middle East, signaling strong market interest. The startup also secured deals with global firms such as Honeywell Aerospace and BlackRock, and established partnerships for flight networks in regions like Florida, Saudi Arabia, and Italy.
In the self-administration process, Lilium’s management, under CEO Klaus Roewe, retains operational control but with oversight from a court-appointed custodian. This procedure often supports new investments or the sale of assets, offering a potential path forward. Roewe stressed Lilium's commitment to sustainable aviation and remains hopeful about the company’s future despite its current challenges. The German government’s decision not to approve the loan, however, has highlighted the contrast with international competitors, who receive substantial government support.
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