Lilium Embarks on Restructuring and New Investment Efforts

KPMG to Lead M&A Process; Insolvency Filings Approved for German Subsidiaries
Lilium N.V.,(Nasdaq: LILM) a developer of electric aircraft for Regional Air Mobility (RAM), recently announced it has engaged KPMG to oversee a structured and open M&A process. The Local Court of Weilheim approved insolvency filings for Lilium’s German subsidiaries, granting the company’s application for a self-administered restructuring, aimed at stabilizing its operations and securing investment to continue work on its all-electric aircraft.

Self-Administration and New Appointments
The court approval enables Lilium’s German subsidiaries to proceed under a self-administration restructuring framework. This arrangement allows the current management team to steer operations with support from experienced restructuring professionals.
Prof. Dr. Gerrit Hölzle and Dr. Thorsten Bieg, both experienced in corporate restructuring, have been appointed as Chief Insolvency Officers (CIOs) for Lilium’s German entities. They bring expertise in corporate reorganization from previous work with firms such as Senvion and The Social Chain AG.
The court also appointed attorney Ivo-Meinert Willrodt, managing partner at PLUTA Rechtsanwalts GmbH, as the provisional custodian to represent creditors’ interests during the proceedings. Mr. Willrodt has significant experience with companies in transition, including Sono Motors and EMT.

Lilium’s CEO Klaus Roewe expressed confidence in the appointments, stating, “With the support of our appointed custodian and the 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.”
Continuing Development on the Lilium Jet
Lilium’s operations remain active, with more than 1,000 employees working to achieve program milestones. Employee payment arrangements have been communicated, and suppliers have been informed of procedural details, reflecting the company’s efforts to keep its projects on track.
The Lilium Jet itself continues in development, with two jets progressing through final assembly stages. One aircraft recently achieved a milestone by completing initial low-voltage power-on testing and is advancing toward ground tests. The fuselage and wings for a third jet are being assembled by suppliers Aciturri and Aernnova. Additionally, Lilium engineers recently placed a completed Lilium Jet airframe in a static test rig for structural testing, a necessary step in preparing for first manned flight and eventual certification.
Broader Investment Challenges in Urban Air Mobility
Lilium’s current financial steps reflect broader trends in the Urban Air Mobility (UAM) sector, where companies often encounter lengthy regulatory and certification processes. In addition, the operational scale and charging needs of electric aircraft have created challenges in establishing a clear path to profitability. These factors have made it difficult for UAM firms to secure investment and demonstrate the economic potential of small electric aircraft.
Trading Update for Lilium Shares
As part of recent updates, NASDAQ has informed Lilium that trading of its shares and warrants will be suspended starting November 6. Following this suspension, Lilium’s shares may trade over-the-counter, which could reduce trading volumes and affect share price.
Lilium N.V.’s Board of Directors recently authorized its Netherlands-registered entity to file for insolvency as of November 4, 2024. This step aligns with the company’s restructuring efforts, aimed at advancing the Lilium Jet’s development while securing the necessary investment for future growth.
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Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has penned over 3,000 articles focused on the commercial drone space and is an international speaker and recognized figure in the industry.  Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.For drone industry consulting or writing, Email Miriam.
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