Investor Consortium Rescues Bankrupt Electric Air Taxi Startup Lilium
A new investor group agrees to acquire Lilium's operating assets, aiming to rehire laid-off workers and restart the business early next year.
An investor consortium rescues electric air taxi startup Lilium just days after the company ceases operations and lays off roughly 1,000 employees. Mobile Uplift Corporation, a newly formed company backed by European and North American investors, agrees to acquire the operating assets of Lilium's two primary subsidiaries. The parent company, Lilium N.V., does not receive any funds under German insolvency law, and KPMG handles the sale process.
Mobile Uplift Corporation intends to rehire the recently laid-off workers immediately after the transaction closes in January, though it remains unclear if all 1,000 employees will return. The new owners plan to restructure the business so Lilium can exit insolvency debt-free while keeping its technology intact. Lilium CEO Klaus Roewe calls the investment agreement a major breakthrough that allows the company to restart its operations.
Lilium faces severe financial struggles despite raising over $1 billion previously and securing notable orders, such as a 100-plane deal with Saudi Arabia. The startup burns through cash faster than it raises new capital while developing its vertical take-off and landing aircraft. This cash crunch forces Lilium to file for insolvency in October after failing to secure emergency government funding.