Lilium Files For Bankruptcy
You may have the old saying, "How do you make $1M in aviation? Start with $20M!"
In the case of electric vehicle manufacturer Lilium, it has hit a barrier in its path towards generating revenue.
I was able to see a full-size mockup of the Lilium Jet at NBAA last week. It was an impressive sight. Ironically, on October 24, the last day of NBAA, Lilium announced it was applying for self-administration (AKA bankruptcy). It wasn't successful in its latest round of fundraising that would have allowed it to continue its path towards certification and production — which is where it can start generating revenue.
According to the press release from Lilium, self-administration, if and when granted by the court, aims to preserve and continue the business that is the subject of the proceedings. Management would retain control and would continue operating the business under the supervision of a custodian. The procedure is often used to initiate investment by new parties or a process to sell the company’s assets and/or business as a whole. In Germany, the procedure is generally perceived as providing an improved chance for a successful in-court business restructuring.
“We deeply regret the insolvency and its consequences for all stakeholders at such a crucial stage of our company’s development,” CEO Klaus Roewe said. “However, while there is no guarantee for success in insolvency proceedings, we hope that the Lilium Jet will get a chance for a fresh start after the self-administration process is completed.”
To view the full press release from Lilium, click HERE.
Thanks for reading!
Joe