Lilium has signed an asset purchase agreement with Mobile Uplift Corporation, a company set up by a consortium of investors from Europe and North America. Mobile Uplift intends to acquire the operating assets of the subsidiaries Lilium and Lilium eAircraft. Lilium is currently in self-administered insolvency proceedings following a lengthy and complex government approval process for a loan from investment and development bank KfW that failed in the Budget Committee of the German parliament.

Subject to the satisfaction of certain conditions, Lilium expects that the agreement will position its subsidiaries to obtain sufficient funding to restart their business operations. Proceeds received from the sale will be utilised according to German insolvency law, with no amounts being distributed to Lilium.

As previously reported, KPMG has been in discussions with potential investors who have indicated interest in the assets and/or business of the subsidiaries. These interests have been considered by Lilium’s creditor committee as part of the KPMG-led M&A process to deliver the financial restructuring.

On closing, the parties aim to implement the planned restructuring of the subsidiaries, which is intended to enable the subsidiaries to exit their self-administration proceedings. On 20 December, 2024 the subsidiaries terminated the contracts of their remaining employees in accordance with German law; Mobile Uplift Corporation intends to re-employ them immediately after opening of the proceedings.

Deal closing is currently expected for early January 2025 and is subject to the satisfaction of certain customary conditions.

“We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough,” Lilium CEO Klaus Roewe explains. “Deal closing at the beginning of January will allow us to restart our business.”