Mobile Uplift Corporation has stepped in to rescue Lilium, the electric air taxi company, from the brink of collapse. This acquisition might be viewed as nothing short of a Christmas miracle for the beleaguered aircraft manufacturer.
Following reports indicating Lilium had laid off almost all of its 1,000 employees, co-founder Patrick Nathen lamented on social media about the company's difficult situation. "It’s a sad reality; Lilium has ceased operations," he stated.
On December 20, 2024, Lilium confirmed the termination of contracts with remaining employees per German law. Lilium’s spokesperson, speaking on behalf of the company, hinted at forthcoming investment news, assuring the public they were working diligently to provide updates.
With the sale of Lilium's business anticipated to finalize by early January 2025, the aim is to restart operations and allow Lilium to exit its self-administration proceedings. The agreement allows the subsidiaries to receive necessary financing to resume operations without the funds flowing directly back to Lilium.
Despite Lilium's financial strain, the company had engaged KPMG to lead the merger and acquisition process, which followed the court’s approval of its insolvency filing. Klaus Roewe, Lilium’s CEO, sought to assure stakeholders, stating, "With the support of our appointed custodian and the restructuring experts, we at Lilium remain fully focused on re-emerging following restructuring, with fresh investment to support the all-electric Lilium Jet’s path to certification and entry.”
Cheering on the deal, Roewe added, "We are very pleased to announce the signing of investment agreement with a very experienced investor consortium," highlighting the significance of this turnaround.
Now, the wave of layoffs may be softened, as reports reveal Mobile Uplift plans to bring back approximately 750 of those previously laid off. Roewe expressed hope for returning staff as the transition to new operations begins.
This acquisition also coincides with Lilium's ambitious plans to roll out their electrically powered aircraft, capable of vertical takeoff and landing. The first manned flight was originally slated for early 2025, with customer deliveries following one year later.
Despite the encouraging news, challenges remain. Lilium needs several hundred million euros to cover continuation expenses, apply for flight certification, and ramp up production. Before the insolvency filings, investors had put 1.5 billion euros behind the company, yet significant fees loom, especially considering the imminent certification and production needs.
Before the acquisition, Lilium had already experienced strained finances, having spurred almost 200 million euros of expenditures the prior year and faced rejections for federal loan guarantees amounting to 50 million euros.
The anticipation surrounding this acquisition centers on its potential to reset Lilium’s strategic direction pragmatically. It will likely permit the aircraft developer to effectively reorganize and respond to the plethora of pending orders from various countries, including the USA and Saudi Arabia, where they’ve collected roughly 700 pre-orders.
While investor details remain scant, the impact of this acquisition could not only anchor Lilium's current operational status but potentially set it on course for future success in the innovative electric flight market. With stakeholders and the public intrigued, the coming months will be pivotal for Lilium as they attempt to pivot from significant turmoil to prosperous re-emergence.
