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.
