Since its filed insolvency for Lilium GmbH and Lilium eAircraft GmbH subsidiaries on Nov. 4, Lilium (Munich, Germany) has appointed KPMG to conduct an open, transparent and fair mergers and acquisitions (M&A) process, with first investor briefings beginning soon. This follows the approval of the insolvency filing and the granting of Lilium’s application for self-administration.  

Preliminary insolvency proceedings under self-administration are court-ordered restructuring proceedings aimed at preserving the business. The management remains in charge and leads the business through the proceedings, supported by restructuring experts. 

Despite these developments, Lilium indicates that work at its German subsidiaries continues, with the more than 1,000 employees engaged in progressing its electric vertical takeoff and landing (eVTOL) aircraft platform to the next program milestone — first manned flight — having been informed on the details of continued employee payment. The business has also informed affected suppliers, outlining expectations and procedural steps. 

The first two Lilium Jets are currently on the final assembly line. The first aircraft recently completed initial low-voltage power-on and the ground testing phase will follow shortly. The fuselage and wings of the third aircraft are currently in assembly at aerostructures suppliers Aciturri and Aernnova. At the end of October 2024, Lilium engineers moved a fully assembled, conforming Lilium Jet airframe into the static test rig for structural testing. The structural strength test is an essential part of the testing plan for first manned flight and type certification. 

The business’ current order pipeline consists of firm orders, reservations, options and memoranda of understanding for more than 780 Lilium Jets to operators in the U.S., South America, Europe, Asia and the Middle East. 

Lilium has been notified by NASDAQ that trading of the company’s shares and warrants will be suspended at the opening of business on Nov. 6.  Following trading suspension, the company’s ordinary shares may commence trading over-the-counter, which may result in significantly lower trading volumes and could further depress the share price.