Lilium Initiates M&A Process, Aims for Continued Progress Towards First Flight and Certification
Lilium N.V. Engages KPMG in M&A Process Amid Restructuring Efforts Following Insolvency Approval
Munich, November 5, 2024 — Lilium N.V., a prominent player in the electric aircraft manufacturing sector, has announced its decision to appoint KPMG for a structured mergers and acquisitions (M&A) process. This announcement comes in the wake of recent regulatory developments concerning the company’s German subsidiaries, which have entered preliminary insolvency proceedings. With KPMG’s involvement, Lilium aims to maintain transparency and fairness in its M&A activities, initiating the first round of investor briefings soon.
The local court in Weilheim sanctioned Lilium’s insolvency filings, permitting the company to pursue self-administration, a court-ordained restructuring process focused on preserving its operational viability while allowing current management to guide the proceedings with the advice of restructuring experts. This development marks a significant step in Lilium’s journey toward regaining stability amid financial challenges that have beset the company in recent months.
As a part of this restructuring process, the court has appointed two seasoned attorneys, Professor Dr. Gerrit Hölzle and Dr. Thorsten Bieg, as Chief Insolvency Officers (CIOs). Their extensive backgrounds in managing crisis situations, including prior engagements with companies like Senvion and The Social Chain AG, bolster Lilium’s restructuring efforts. In addition, lawyer Ivo-Meinert Willrodt of PLUTA Rechtsanwalts GmbH has been designated as provisional custodian, tasked with safeguarding the creditors’ interests throughout the insolvency process.
Klaus Roewe, CEO of Lilium, expressed optimism regarding these developments, asserting, “With the guidance of our appointed custodian and restructuring experts, we remain steadfast in our commitment to emerge from this restructuring in a stronger position. We are actively seeking fresh investment to facilitate the certification and operational launch of our all-electric Lilium Jet.”
Despite the challenges posed by the ongoing restructuring, Lilium’s dedicated workforce of over 1,000 employees continues to push forward towards significant program milestones. The company has communicated a clear commitment to maintaining employee compensation during this transition and has also informed its supply chain partners about expected changes and procedural updates.
Highlighting the company’s determination to bring its innovative aircraft to market, the production of the first two Lilium Jets is progressing well. The initial aircraft has successfully achieved its low-voltage power-on milestone and is set to enter the critical ground testing phase. Simultaneously, the fuselage and wings of a third aircraft are being assembled at specialized manufacturing locations. Notably, the third jet’s fully assembled airframe has recently been moved into a static test rig, marking a critical phase in Lilium’s development strategy as it prepares for structural integrity assessments.
The company is not only focused on technological advancements; it is also maintaining a robust order pipeline, comprising firm orders, reservations, options, and memoranda of understanding for over 780 Lilium Jets from operators across the globe, including regions as diverse as the United States, Europe, Asia, and the Middle East. Such a varied international interest underscores the potential market demand for Lilium’s innovative approach to air mobility, which aims to transform regional transportation through its electric vertical takeoff and landing jet.
However, the financial turmoil has led to a notification from NASDAQ regarding the suspension of trading for Lilium’s shares and warrants, effective November 6. Following this suspension, Lilium’s shares may be traded over-the-counter, a scenario that typically results in lower trading volumes and increased volatility in share prices, posing additional challenges for the company’s recovery.
To address these developments, Lilium’s Board of Directors has authorized the formal filing for insolvency for the Netherlands-registered public limited liability entity, a move designed to streamline its restructuring efforts and secure a stable financial future.
Founded in 2015, Lilium is dedicated to creating an eco-friendly and accessible alternative for high-speed regional transportation. Through its development of the Lilium Jet, the firm aims to achieve unprecedented performance metrics while contributing to the significant decarbonization of air travel. Lilium is collaborating with various stakeholders across aerospace, technology, and infrastructure sectors to realize its vision. With a workforce comprising approximately 500 aerospace engineers and a leadership team renowned for delivering groundbreaking aircraft, Lilium continues its quest to revolutionize travel, both for passengers and cargo.
For further information on Lilium, please reach out to:
Media Contact:
Rainer Ohler
Phone: +49 172 4890353
Email: rainer.ohler@seniorstrategists.com
Investor Contact:
Rama Bondada
Vice President, Investor Relations
Email: investors@lilium.com
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This restructuring marks a pivotal chapter for Lilium as it navigates through financial distress, leveraging expert guidance, and aiming for a triumphant resurgence in the innovative aviation landscape.
