Following recent concerns that the German company Lilium, a manufacturer of electric vertical takeoff and landing (eVTOL) aircraft, might close its doors without reaching an agreement to save it from bankruptcy, an announcement this Christmas Eve brings relief to the company.
Lilium announced today, December 24, the signing of an asset purchase agreement with Mobile Uplift Corporation GmbH, a company founded by an experienced consortium of investors from Europe and North America. Mobile intends to acquire the operational assets of Lilium GmbH and Lilium eAircraft GmbH subsidiaries.
Subject to the fulfillment of certain conditions precedent, Lilium expects the Agreement to position the Subsidiaries to obtain sufficient financing to restart their commercial operations. The proceeds received from the sale will be used in accordance with German Insolvency Law, with no proceeds being distributed to Lilium N.V.
As reported by Aeroin, KPMG has held discussions with potential investors who have shown interest in the assets and/or businesses of the Subsidiaries. These interests were considered by the creditor committee of Lilium GmbH as part of the mergers and acquisitions (M&A) process led by KPMG, aimed at the financial restructuring of Lilium GmbH.
Following the closure, the parties intend to implement the planned restructuring of the Subsidiaries, with the aim of enabling them to exit their self-administration processes. On December 20, 2024, the Subsidiaries terminated the contracts of their remaining employees in accordance with German law.
Confirmation of the agreement is currently expected in early January 2025 and is subject to the fulfillment of certain customary conditions precedent, including the opening of the procedure and the consent of the creditor committee.
«We are very pleased to announce the signing of an investment agreement with a highly experienced consortium of investors, which represents a significant step forward,» said Klaus Roewe, CEO of Lilium. «Closing the deal in early January will allow us to restart our business.»
The aircraft developed by Lilium, named the Lilium Jet, was chosen by the Brazilian company Azul Linhas Aéreas for its air mobility plans in Brazil.
