AviTrader sponsorship ad

Lilium N.V. announces insolvency filing for German subsidiaries amid funding setback

Lilium Jet © Lilium
Lilium Jet © Lilium

Lilium N.V., the electric aircraft manufacturer, has confirmed that its principal German subsidiaries will initiate applications for self-administration proceedings in the coming days. This move follows a protracted and complex government approval process for a loan from KfW, which was ultimately declined by the Budget Committee of the German Parliament.

As Lilium’s international competitors benefit from grants and loans in regions such as the U.S., France, China, Brazil and the UK, German governmental support was viewed as vital by Lilium’s investors to maintain confidence and foster further investment opportunities.

“Our objective was to secure shareholder investment in a new funding round, anchored by a German government-backed loan of €100 million,” stated Lilium CEO Klaus Roewe. “We had already conditionally arranged additional private capital to complement the KfW loan. However, the Budget Committee could not reach agreement on the loan, and Bavaria alone could not shoulder the financial responsibility.”

The KfW loan’s approval by the German government was a pre-requisite for Lilium’s already committed private funding, and without this essential support, Lilium found no other option than to seek self-administration for its primary German subsidiaries.

In parallel, Lilium was engaged in advanced negotiations for a French government-backed guarantee of a €219 million loan to support the development of a battery factory and assembly line in southwestern France. Following the anticipated inaugural flight of the Lilium Jet in early 2025, Lilium had expected pre-delivery payments and fresh investment to sustain the business into 2026, when initial deliveries were expected to begin. Lilium currently holds firm orders, reservations, options, and memoranda of understanding for over 780 Lilium Jets for operators spanning the U.S., South America, Europe, Asia, and the Middle East.

As the insolvency proceedings move forward, Lilium’s priority is now to support these proceedings, with customers, employees and suppliers expected to receive notifications promptly.

Should the court grant the self-administration request, the proceedings are designed to preserve the business under review. The existing management team would retain operational control, working under the supervision of a custodian. Self-administration is frequently used in Germany as a strategic pathway for businesses aiming to attract new investment or explore options for asset or whole business sales and is generally seen as offering a higher potential for successful business restructuring within the court’s jurisdiction.

“We deeply regret the insolvency and the ramifications for all stakeholders, especially at such a pivotal point in our company’s development,” CEO Klaus Roewe remarked. “Though insolvency proceedings do not guarantee success, we are hopeful that the Lilium Jet will have an opportunity for a new beginning once the self-administration process concludes.”

Roewe added, “We are steadfast in our belief that electric aviation remains our greatest hope for decarbonising the sector.”

Directly affected by the filing are Lilium GmbH and Lilium eAircraft GmbH. The company plans to release further information on support measures for stakeholders and operational changes in the coming days as the filing progresses.

Share this Article
Monday October 6, 2025
Henrik Källsson, Deputy CEO of Erik Thun AB (l), together with Lars Wingefors, CEO of Lars Wingefors AB (r)
The Erik Thun Group, a Swedish shipping company which has historically been involved in aircraft sales and leasing, is to leave that business area. Therefore, the Group has signed an agreement with Lars Wingefors AB for the sale of Täby Air Maintenance AB (TA... Read More »
Monday October 6, 2025
Sweden has opted for four C-390 Millennium aircraft and options for further more
Sweden has confirmed the purchase of four C-390 Millennium multi-mission aircraft from Embraer. The agreement also secures seven additional purchase options, opening the door for future acquisitions and signalling rising interest among European partners. This ... Read More »
Monday October 6, 2025
A350 simulator © KLM
KLM has officially commissioned the first Airbus A350 simulator in the Netherlands, a major step in preparing for the arrival of the A350 aircraft in its fleet by the end of 2026. The new simulator gives KLM pilots the chance to train on the latest technologie... Read More »
Monday October 6, 2025
Nerijus Chormanskis, Head Commercial of Line Maintenance
FL Technics, an aircraft maintenance, repair and overhaul (MRO) company, has strengthened its presence in Northern Europe. The company, part of Avia Solutions Group, has opened fourteen new line maintenance stations across Scandinavia in just six months. This ... Read More »
Monday October 6, 2025
© Avolon
Avolon has released its update for the third quarter of 2025, reporting significant fleet activity and a series of major financing developments that underline its market strength. During the quarter, Avolon acquired 17 aircraft while selling 15, closing the pe... Read More »
Monday October 6, 2025
The addition of SciTec’s full-stack software and big data processing capabilities expands Firefly’s responsive launch, land, and orbit mission services for space and defense customers
Firefly Aerospace has agreed to acquire SciTec for about US$855 million. The deal combines US$300 million in cash with US$555 million in Firefly shares, issued at US$50 per share. SciTec brings advanced software analytics, remote sensing, and multi-phenomenolo... Read More »
Friday October 3, 2025
Ribbon-cutting ceremony at the official inauguration of the new building
Liebherr-Aerospace Saline, Inc. has completed its fifth major expansion since 1993, further enhancing its aftermarket service capacities. The new facility spans 33,000 ft², or 3,065 m² and adjoins the existing complex; the most recent addition before this wa... Read More »
Friday October 3, 2025
© Shutterstock
Willis Lease Finance Corporation has confirmed that its subsidiary, Willis Sustainable Fuels (UK), will build a new SAF plant at Wilton International in Teesside. The facility will be located within the Wilton International industrial site, which is owned and ... Read More »
Friday October 3, 2025
Marc Cho, Co-Head and Managing Director of HALO,
HALO AirFinance (HALO), a joint venture between GA Telesis and Tokyo Century Corporation, has closed its eighth and final senior loan. The financing involved Crestone Air Partners (Crestone) and Blue Owl Capital investment vehicles. It supported the acquisitio... Read More »
Friday October 3, 2025
Embraer
Embraer has confirmed the delivery of 62 aircraft in the third quarter of 2025. This marks a modest increase compared with the 61 jets delivered in the second quarter and 59 in the same period of 2024. The company’s Commercial Aviation unit delivered 20 new ... Read More »
Friday October 3, 2025
Lyon Airport
VINCI Airports has announced that Lyon Airport has reached net zero emissions as of May 2025. It is the first airport in France with more than ten million passengers to achieve this milestone. Toulon Airport reached the target in 2023. Lyon Airport’s environ... Read More »
Friday October 3, 2025
AAR CORP. subsidiary Airinmar has secured a new multi-year support services agreement with Malaysia Airlines. The deal will provide the carrier with specialist aircraft warranty management and value engineering services. Airinmar is an independent provider of ... Read More »
Thursday October 2, 2025
Joby aircraft in ANA livery flying at EXPO 2025 Osaka, Kansai, Japan © Joby Aviation
ANA Holdings (ANA HD) and Joby Aviation have successfully demonstrated Joby’s electric air taxi at Expo 2025 Osaka, Kansai, Japan. The public flight, the first ever at a world expo, featured vertical take-off, wing borne transition, and smooth vertical landi... Read More »
Thursday October 2, 2025
IAG made a strategic investment in sustainable aviation fuel start-up OXCCU
International Airlines Group (IAG) has joined the £20.75 million (US$28 million) Series B funding round for OXCCU, a UK SAF innovator. The round attracted new and existing investors, including Safran Corporate Ventures, Orlen and Aramco Ventures, among other ... Read More »
Thursday October 2, 2025
Nav-Aids supply Black Hawk ground support testing equipment to U.S. Army
CCC has announced a contract award from the United States Department of Defense (U.S. DoD) for pressure test adapters. The adapters, manufactured by Nav-Aids, will support U.S. Army maintenance crews working on Black Hawk helicopters. These adapters will allow... Read More »
Thursday October 2, 2025
Jimmy Hill
Aviation Technical Services (ATS) has announced a major leadership transition with the appointment of Jimmy Hill as Senior Vice President of Ranger Air Aviation (Ranger Air). He succeeds Rob Hill, who is retiring after more than two decades at the helm, having... Read More »
Thursday October 2, 2025
Nico Neumann, CEO of Deutsche Aircraft and Graham Younger, VP Global Aerospace at Expleo
Expleo, a global provider of engineering, technology and consulting services, has signed a cooperation agreement with Deutsche Aircraft. The partnership will deliver engineering services for the aircraft programme and strengthen Deutsche Aircraft’s supply ch... Read More »
Thursday October 2, 2025
Engine in hangar for maintenance © Shutterstock
AFG Aviation Ireland (AFG), a wholly owned subsidiary of Aircraft Finance Germany, has successfully finalised the purchase of two General Electric engines from GE Aviation Materials (GEAM), part of GE Aerospace. The deal, concluded on September 24, 2025, refle... Read More »
Wednesday October 1, 2025
Braathens International Airways AB (Braathens) has been forced to file for bankruptcy in relation to its Airbus operations after efforts to secure fresh financing failed. The decision, taken by the company’s Board of Directors, was filed at the Stockholm Dis... Read More »
Wednesday October 1, 2025
WLFC
Willis Lease Finance Corporation (WLFC) has appointed Pascal Picano as Senior Vice President, Aircraft Leasing & Trading. Effective immediately, Picano will report directly to Chief Executive Officer Austin C. Willis and collaborate closely with Marc Pierp... Read More »
ajw avitrader

2026 MEDIA KIT

VP Sales & Business Development Americas
Tamar Jorssen
tamar.jorssen@avitrader.com
Phone: +1 (778) 213 8543
VP International Sales & Marketing
Malte Tamm
malte.tamm@avitrader.com
Phone: +49 (0)162 8263049

Subscribe to the most widely accepted news source in the aviation industry!


Free Daily, Weekly and MRO Publications delivered to your Inbox!
News Alerts, Editorials, Marketplace, Executive Interviews +more

Select publications:

*we respect your privacy and AviTrader will not share your email address to any 3rd Parties.