Lilium initiates M&A process amid insolvency proceedings for German subsidiaries 

Germany-based electric vertical take-off and landing (eVTOL) aircraft manufacturer, Lilium, has recently appointed KPMG to oversee a transparent and fair merger and acquisition (M&A) process as part of its restructuring strategy. 

The decision follows the recent approval by the local Court of Weilheim for preliminary insolvency proceedings for the company’s German subsidiaries, with the court granting Lilium’s application for self-administration. 

Under Germany’s self-administration insolvency framework, Lilium’s management team will remain in control of daily operations while restructuring experts support them through the process. 

The court has appointed Prof. Dr. Gerrit Hölzle and Dr. Thorsten Bieg, both experienced corporate restructuring lawyers, to the boards of Lilium’s German subsidiaries. 

Additionally, attorney Ivo-Meinert Willrodt from PLUTA Rechtsanwalts GmbH has been appointed as provisional custodian to protect creditors’ interests. 

Lilium CEO, Klaus Roewe expressed optimism about the appointments, stating, “With the support of our appointed custodian and restructuring experts we at Lilium remain fully focused on re-emerging following restructuring, with fresh investment to support the all-electric Lilium Jet’s path to certification and entry into service.” 

Steady development 

As Lilium proceeds with restructuring, operations across its German subsidiaries continue. 

The company confirmed that its 1,000 employees remain focused on progressing the Lilium Jet’s development towards its first manned flight. 

Additionally, the production of the Lilium Jets remains on track, with two aircraft currently in the final assembly stage. 

The first of these has completed its low-voltage power-on milestone and is expected to enter the ground testing phase soon. 

In parallel, components for a third aircraft are on assembly with suppliers Aciturri and Aernnova. 

Notably, Lilium recently achieved a milestone in its testing programme by placing a fully assembled Lilium Jet airframe in a static test rig for essential structural strength testing, an important step towards securing type certification. 

Lilium’s current order pipeline consists of firm orders, reservations, and options for over 780 Lilium Jets with operators in regions including the US, South America, Europe, Asia, and the Middle East. 

The company remains focused on its future growth despite recent financial challenges. 

However, it faced another setback as NASDAQ notified Lilium of an impending trading suspension of its shares and warrants, effective 6 November. 

Following this suspension, the company’s shares may trade over-the-counter, which could impact trading volumes and share value.