Lilium, the Munich-based electric aircraft startup, was on the brink of closure earlier this week, with plans to lay off its more than 1,000 employees after failing to secure additional funding. However, on December 24, a surprise announcement revealed that Lilium had signed an asset purchase agreement with Mobile Uplift Corporation, a consortium of investors from Europe and North America. This deal is set to acquire the operating assets of Lilium GmbH and Lilium eAircraft GmbH.
The agreement, contingent on satisfying certain conditions, aims to provide the necessary funding to restart Lilium’s operations. Proceeds from the sale will be handled under German Insolvency Law, with no distribution to Lilium N.V. KPMG, which has been guiding Lilium through its financial restructuring process, led the M&A discussions. The deal is expected to close by early January 2025, subject to the approval of Lilium’s creditors committee.
Lilium has faced significant financial challenges, requiring hundreds of millions of euros to complete its aircraft certification, ramp up production, and achieve its goal of conducting the first manned flight. However, the company still holds over 700 firm and pre-orders for its electric aircraft, from customers in the United States, the United Kingdom, and Saudi Arabia.
This agreement offers a ray of hope for Lilium’s future, with most of its team members potentially being rehired at the beginning of next year. CEO Klaus Roewe expressed his optimism, calling the deal “a major breakthrough” for the company.