German eVTOL developer Volocopter has filed an application for the opening of insolvency proceedings at the Karlsruhe Local Court. The court has initiated provisional insolvency administration and has appointed Tobias Wahl, partner and attorney at Anchor Rechtsanwältegesellschaft, as its administrator.

Volocopter has been developing safe, quiet and sustainable eVTOL aircraft plus a digital backbone that connects aircraft, infrastructure and operators, the VoloIQ. Founded in 2011, the start-up is nearing the finish line to obtain aircraft type certification and launch its urban eVTOL, the VoloCity.

The company aims to enter the market in 2025 following VoloCity’s successful certification by EASA.

CEO Dirk Hoke says: “We are ahead of our industry peers in our technological, flight test and certification progress. That makes us an attractive company to invest in while we organise ourselves with internal restructuring.”

Numerous successful financing rounds have driven the company’s development and operations in the past. With one of the lowest burn rates in the industry, Volocopter has successfully operated in an extremely difficult financial environment. However, despite recent intensive fundraising efforts, finding a viable solution to maintain regular operations outside of insolvency proceedings has not been possible.

Business operations will continue as usual during the provisional insolvency proceedings. The provisional insolvency administrator has now held a staff meeting to inform employees about the current situation and answer initial questions about the proceedings. In addition, Tobias Wahl has initiated an investor process.

“The company needs financing to take the final steps towards market entry. We will endeavour to develop a restructuring concept by the end of February and implement it with investors,” explains Wahl.