The company informed the supervisory authority American Stock Exchange Thursday that it no longer has the additional financial resources necessary to continue the business, indicating that for this reason, its board of directors will submit a request for bankruptcy in the coming days due to excessive indebtedness or default, and that the board will request self-management.
It often performs actions Bankruptcy Coupled with self-management leads to the process of attracting new investors and finding the best possible solutions for creditors. However, it remains uncertain whether the lower court will approve the self-administration request, Lilium told investors.
Over the past years, Lilium has developed a small electric-powered aircraft. After several test flights, the first manned flight is planned for next spring, with the first aircraft to be delivered to customers in 2026.
The company, run by former Airbus director Klaus Ruffe, has 1,000 employees and has about 700 confirmed and pre-orders from the United States, the United Kingdom, France, Saudi Arabia and other countries.
Clients and investors pumped investments worth 1.5 billion euros into the company listed on the Stock Exchange Nasdaq American. However, the procedures for obtaining permits and developing production would have cost significant additional sums. Lilium spent nearly 200 million euros in the first half of 2024 alone.
The ruling coalition in Berlin rejected a request for a government loan guarantee worth 50 million euros.
The coalition consists of the Chancellor’s Party Olaf Schulz The Socialist Party, the Green Party, and the Free Democratic Party.
Although the Socialist Party and the Liberal Party were in favor of this by majority, the Green Party rejected this request. The state of Bavaria had already pledged to guarantee a loan of 50 million euros, but on the condition that the federal government contribute to the company in the same way.