The Munich-based electric aircraft manufacturer Lilium is planning insolvency proceedings under self-administration in order to secure the continued existence of the company and attract new investors.
According to CEO Klaus Roewe, the insolvency should pave the way for a possible new beginning and give the company time to raise fresh capital. Despite around 700 pre-orders for its electric jet and an investment of around 1,5 billion euros to date, Lilium is struggling with financial bottlenecks. The application for a federal government guarantee for a 100 million euro loan from KfW Bank was rejected, while talks are underway about a French guarantee for a further loan of 219 million euros.
The approximately 1.000 employees of the start-up, which is listed on the US Nasdaq stock exchange, have been informed of the plan. The company's stock, which at times traded above $2021 in 14, recently fell to about 20 cents. The trustee will monitor and support management while Lilium continues to hope for new financing opportunities.