Lilium Board approves application for self-administration of German subsidiaries
Lilium N.V. (LILM) announced that its principal German subsidiaries will apply for self-administration proceedings following the German parliament's Budget Committee's rejection of a €100 million KfW loan guarantee. The company was also unable to secure a €50 million loan guarantee from the Bavarian government. The loan was important for attracting additional private investment and maintaining market confidence. Lilium was also in discussions for a €219 million French government-guaranteed loan for a battery factory. The company had anticipated receiving pre-delivery payments and new investment following the Lilium Jet's planned first flight in early 2025, with an order pipeline of over 780 jets. The self-administration proceedings aim to preserve and continue business operations under management control with custodian supervision.
Lilium N.V. (LILM) ha annunciato che le sue principali filiali tedesche faranno richiesta per procedure di autogestione, a seguito del rifiuto da parte del Comitato Bilancio del Parlamento tedesco di una garanzia per un prestito di €100 milioni da parte di KfW. L'azienda non è riuscita nemmeno a ottenere una garanzia per un prestito di €50 milioni dal governo bavarese. Questo prestito era importante per attrarre investimenti privati aggiuntivi e mantenere la fiducia del mercato. Lilium era inoltre in discussione per un prestito garantito dal governo francese di €219 milioni per una fabbrica di batterie. L'azienda si aspettava di ricevere pagamenti anticipati e nuovi investimenti dopo il volo di prova previsto per il Lilium Jet all'inizio del 2025, con un portafoglio ordini di oltre 780 jet. Le procedure di autogestione mirano a preservare e continuare le operazioni aziendali sotto controllo della direzione con supervisione del custode.
Lilium N.V. (LILM) anunció que sus principales filiales en Alemania solicitarán procedimientos de autoadministración tras el rechazo del Comité de Presupuesto del Parlamento alemán a una garantía de préstamo de €100 millones de KfW. La empresa tampoco pudo asegurar una garantía de préstamo de €50 millones del gobierno de Baviera. Este préstamo era importante para atraer inversión privada adicional y mantener la confianza del mercado. Lilium también estaba en conversaciones para un préstamo garantizado por el gobierno francés de €219 millones para una fábrica de baterías. La compañía había anticipado recibir pagos anticipados y nueva inversión tras el primer vuelo planeado del Lilium Jet a principios de 2025, con una cartera de pedidos de más de 780 jets. Los procedimientos de autoadministración tienen como objetivo preservar y continuar las operaciones comerciales bajo el control de la dirección con supervisión del custodio.
Lilium N.V. (LILM)는 독일 의회 예산위원회가 KfW의 €1억 보증 대출을 거부한 후 주요 독일 자회사가 자율 관리 절차를 신청할 것이라고 발표했습니다. 또한 이 회사는 바이에른 주 정부로부터 €5천만 보증 대출을 확보하지 못했습니다. 이 대출은 추가 민간 투자를 유치하고 시장 신뢰를 유지하는 데 중요했습니다. Lilium은 또한 배터리 공장을 위한 €2억1천9백만의 프랑스 정부 보증 대출에 대해 논의 중이었습니다. 회사는 2025년 초에 예정된 Lilium Jet의 시험 비행 후 선불금을 받고 새로운 투자를 받기를 기대했으며, 780대 이상의 항공기 주문 파이프라인을 보유하고 있습니다. 자율 관리 절차는 관리 통제하에 사업 운영을 유지하고 지속하는 것을 목표로 합니다.
Lilium N.V. (LILM) a annoncé que ses principales filiales allemandes demanderont une procédure d'autogestion suite au rejet par le Comité des budgets du parlement allemand d'une garantie de prêt de 100 millions d'euros de KfW. L'entreprise n'a pas pu non plus obtenir une garantie de prêt de 50 millions d'euros du gouvernement bavarois. Ce prêt était important pour attirer des investissements privés supplémentaires et maintenir la confiance du marché. Lilium était également en discussions pour un prêt garanti par le gouvernement français de 219 millions d'euros pour une usine de batteries. L'entreprise espérait recevoir des paiements anticipés et de nouveaux investissements après le vol inaugural prévu du Lilium Jet début 2025, avec un portefeuille de commandes de plus de 780 jets. Les procédures d'autogestion visent à préserver et à poursuivre les opérations commerciales sous le contrôle de la direction avec la supervision d'un gardien.
Lilium N.V. (LILM) gab bekannt, dass ihre wichtigsten deutschen Tochtergesellschaften ein Verfahren zur Selbstverwaltung beantragen werden, nachdem der Haushaltsausschuss des Deutschen Bundestages eine Garantie für ein KfW-Darlehen in Höhe von 100 Millionen Euro abgelehnt hat. Das Unternehmen konnte auch keine Garantie für ein Darlehen in Höhe von 50 Millionen Euro von der bayerischen Regierung erhalten. Das Darlehen war wichtig, um zusätzliche private Investitionen zu gewinnen und das Marktvertrauen aufrechtzuerhalten. Lilium war auch in Gesprächen über ein französisches, staatlich garantiertes Darlehen in Höhe von 219 Millionen Euro für eine Batteriefabrik. Das Unternehmen hatte erwartet, nach dem geplanten Erstflug des Lilium Jets Anfang 2025 Vorauszahlungen und neue Investitionen zu erhalten, mit einem Auftragsbestand von über 780 Jets. Die Verfahren zur Selbstverwaltung zielen darauf ab, die Geschäftstätigkeiten unter der Kontrolle des Managements mit Aufsicht durch einen Verwalter aufrechtzuerhalten und fortzuführen.
- Current order pipeline consists of over 780 Lilium Jets
- Management retains control under self-administration proceedings
- Potential for business restructuring through in-court proceedings
- Failed to secure €100 million KfW loan guarantee from German government
- Unable to obtain €50 million loan guarantee from Bavarian government
- Principal German subsidiaries forced into insolvency proceedings
- Loss of committed private funding due to failed government support
- Uncertainty regarding €219 million French government-backed loan
Insights
This is a critical development signaling severe financial distress at Lilium. The failure to secure the
The company's order book of 780 Lilium Jets now faces significant uncertainty. While self-administration proceedings in Germany can facilitate restructuring, the lack of government backing in a capital-intensive industry like aviation puts Lilium at a major competitive disadvantage against rivals receiving state support in other countries.
The inability to secure the planned
The timing of this insolvency filing is particularly problematic as it comes before Lilium's important first flight milestone planned for early 2025. The eVTOL sector requires extensive capital for certification, manufacturing setup and market entry. Without strong financial backing, completing these essential steps becomes extremely challenging.
The contrast between Lilium's situation and competitors receiving government support in major aviation markets (US, France, China) highlights a significant competitive gap. The loss of potential French manufacturing facilities also impacts Lilium's ability to establish a robust production infrastructure.
While the core technology and 780-unit orderbook represent valuable assets, the uncertainty created by insolvency proceedings could lead customers to explore alternatives with better-funded competitors, potentially eroding this key advantage.
- Follows German parliament´s Budget Committee not approving a loan guarantee that was a condition precedent to a private fundraise
- Company was also unable to reach an agreement in principle with Bavarian government to guarantee a
€50 million loan - Application for self-administration proceedings driven by insolvency at Lilium subsidiaries in Germany
MUNICH, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Lilium N.V. (Nasdaq: LILM), a leading electric aircraft manufacturer and pioneer in Regional Air Mobility (RAM), today announced that its principal German subsidiaries will apply for self-administration proceedings in the next few days with the competent court in Germany. This follows a lengthy and complex government approval process for a loan from KfW, which failed in the Budget Committee of the German parliament.
Lilium’s international competition is receiving grants and loans in the U.S., France, China, Brazil, and the UK. Therefore, German government support was seen by Lilium investors as critical to retain market confidence and potential future investment.
“Our plan was to obtain shareholder investment in a new funding round anchored by a German government backed loan of
German government support of the KfW loan was a closing condition to already committed private funding and without this support Lilium was left with no alternative but to cause the principal German subsidiaries to file for self-administration.
Lilium was also in advanced discussions regarding a French government guarantee of a
Supporting the insolvency proceedings is now the top priority for Lilium. Customers, employees and suppliers will be notified by the company as soon as possible.
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.”
“We strongly believe that electric flying is our best hope for the decarbonization of aviation,” Klaus Roewe added.
Directly impacted by the filing are Lilium GmbH and Lilium eAircraft GmbH. Plans for affected stakeholders and the operational implementation of the necessary measures will be shared in the coming days after the filing and related procedures have been launched.
Lilium Contact information for media:
Rainer Ohler
+49 1724890353
Rainer.ohler@seniorstrategists.com
press@lilium.com
Lilium Contact information for investors:
Rama Bondada
Vice President, Investor Relations
investors@lilium.com
About Lilium
Lilium (NASDAQ: LILM) is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia, Lilium’s 1,000+ strong team includes approximately 500 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium’s headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. To learn more, visit www.lilium.com.
Lilium Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding the ongoing fundraising efforts (including with the German and French governments), expectations regarding the self-administration proceedings in Germany, the markets and industry in which Lilium operates or intends to operate, including the estimated potential future size of the global eVTOL market, and the timing of first flight (and prospective receipt of pre-delivery payment and new investment at that time) and the Lilium Jet’s entry into service. . These forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “may,” “on track,” “plan,” “project,” “should,” “strategy,” “will,” “would” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on management’s current expectations with respect to future events and are based on assumptions and are subject to risk and uncertainties that are subject to change at any time. Actual events or results may differ materially from those contained in the forward-looking statements. Factors that could cause actual future events to differ materially from the forward-looking statements in this press release include the risk that appropriate government approvals for the financing will not be obtained, and the risk that definitive documentation for the financing will not be agreed, as well as those risks and uncertainties discussed in Lilium’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the section titled “Risk Factors” in Exhibit 99.2 of the Report on Form 6-K filed by Lilium with the SEC on July 17, 2024 and similarly titled sections in Lilium’s other SEC filings, all of which are available at www.sec.gov. Forward-looking statements speak only as of the date they are made. You are cautioned not to put undue reliance on forward-looking statements, and Lilium assumes no obligation to, and does not intend to, update, or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
Why is Lilium (LILM) filing for self-administration proceedings in Germany?
What is the current order pipeline for Lilium (LILM) Jets?
What happens to Lilium (LILM) during self-administration proceedings?
