200 million euros

Air cab start-up Lilium receives fresh money

According to the investors, the loss of a company like Lilium would be "fatal" for Germany and Europe.

(Bild: Lilium)

The insolvent electric aircraft manufacturer Lilium is to receive 200 million euros from its rescuing backer. The capital increase is intended to provide Lilium with the funds it needs to bring its small electric aircraft to market maturity, as announced by the Bernstein Group consultancy firm on behalf of the investor consortium MUC (Mobile Uplift Corporation).

Lilium had filed for insolvency in the fall because it lacked the money to set up production. At literally the last second, the investor consortium signed a purchase agreement for the business assets of the two Lilium subsidiaries Lilium GmbH and Lilium eAircraft. The 200 million euros of fresh money is not the purchase price - this is still unknown.

Creditors of the Lilium subsidiaries still have to agree
However, according to MUC, several legal steps are still necessary, even if these are essentially formalities. The creditors' committee of the Lilium holding company has already approved the sale to MUC, but the decisive creditors' committees for the two Lilium subsidiaries still have to be appointed by the competent local court and then also approve the purchase agreement.

The e-aircraft, often referred to as "air cabs", will also be able to be used for other purposes, including as rescue aircraft for medical emergencies.

Several investors - both old and new - are involved in the rescue of the company, although not all of them are known by name. These include the German battery developer and manufacturer CustomCells, the venture capital fund Earlybird and the financial investment consultancy GenCap. In the past, the Chinese Tencent Group was also among the investors, but it is not currently named.

"High risks and challenges"
The partners involved are "aware of the size of the task and the associated high risks and challenges", the press release stated - "but the loss of a company like Lilium would be fatal for Germany and Europe". The company, headed by former Airbus manager Klaus Roewe, has around 700 firm and advance orders from the USA, the UK, France, Saudi Arabia and other countries.

Customers and investors had already invested 1.5 billion euros in the company, which was listed on the US stock exchange Nasdaq until it filed for insolvency. The investor consortium MUC expects the reorganization to be completed in the first quarter.