The board could then continue to run the company, which has around 1,000 employees and is headquartered in Bavaria, under the supervision of an administrator and would have more time to attract new investors.
Lilium has announced that it will file for insolvency at the Weilheim district court in the next few days due to impending insolvency or excessive indebtedness. The German federal government had rejected a guarantee for half of a 100 million euro loan from KfW Bank. “We had already secured additional private capital under reservation to supplement the KfW loan,” said Roewe. Discussions about a guarantee from France for a loan of 219 million euros to build a battery factory and an assembly line in southwest France had progressed.
The start-up company has developed an electrically powered small aircraft in recent years. After many test flights, the first manned flight was planned for next spring and the first delivery to customers was planned for 2026. But Lilium needs fresh money for this. The company, led by former Airbus manager Roewe, has around 700 firm and pre-orders from the USA, Great Britain, France, Saudi Arabia and other countries.
500 aerospace engineers
Customers and investors have already invested 1.5 billion euros in the company, which is listed on the US stock exchange Nasdaq. The share, which peaked at over $14 in 2021, still cost around 20 cents (0.19 euros) on Friday.
The employees – including around 500 aerospace engineers – were informed on Thursday. Another staff meeting is planned for next week. There is no works council at Lilium. IG Metall is not represented there.
Interview with Alex Roewe, CEO of Lilium
Interviewer: Thank you for joining us today, Alex. Recently, Lilium announced plans to file for insolvency. Can you provide insight into what led to this decision?
Alex Roewe: Thank you for having me. The decision to file for insolvency stems from a combination of excessive indebtedness and the recent denial of a crucial loan guarantee from the German federal government. We were counting on this guarantee to secure a €100 million loan from KfW Bank, which was essential for our operations and growth.
Interviewer: What are the immediate steps Lilium plans to take following this announcement?
Alex Roewe: We aim to continue operations through an administrator while seeking fresh investments. Our board will remain in charge, allowing us more time to attract potential investors and stabilize the company, which currently employs around 1,000 people.
Interviewer: You mentioned ongoing discussions for a loan guarantee from France for a new battery factory. How critical is this funding for Lilium’s future?
Alex Roewe: It’s incredibly critical. The loan of €219 million would be vital for our planned projects in France, including the battery factory and assembly line. Successfully securing this funding will help us maintain momentum and continue our development of electrically powered small aircraft.
Interviewer: Your company has developed a promising aircraft and has secured numerous orders from international clients. How do you envision Lilium’s future amid these financial challenges?
Alex Roewe: We have confidence in our technology and the demand for what we offer. With over 700 firm and pre-orders from clients across the globe, our product has potential. If we manage to attract the necessary funding, I believe we can fulfill our timeline for the first delivery in 2026.
Interviewer: Communicating such critical news to your employees can be challenging. How has the team reacted, and what support is being provided during this transition?
Alex Roewe: It’s certainly been a tough time for everyone. We held meetings to keep our employees informed, and another one is planned for next week. While we’re navigating this difficult chapter, we are dedicated to supporting our team, and it’s crucial to maintain open lines of communication as we move forward.
Interviewer: Thank you, Alex. We look forward to following Lilium’s journey and hope for a positive resolution.
Alex Roewe: Thank you, it’s important to us that we stay transparent and optimistic during these times.
Interview with Alex Roewe, CEO of Lilium
Interviewer: Thank you for joining us today, Alex. Recently, Lilium announced plans to file for insolvency. Can you provide insight into what led to this decision?
Alex Roewe: Thank you for having me. The decision to file for insolvency stems from a combination of excessive indebtedness and the recent denial of a crucial loan guarantee from the German federal government. We were counting on this guarantee to secure a €100 million loan from KfW Bank, which was essential for our operations and growth.
Interviewer: What are the immediate steps Lilium plans to take following this announcement?
Alex Roewe: We aim to continue operations through an administrator while seeking fresh investments. Our board will remain in charge, allowing us more time to attract potential investors and stabilize the company, which currently employs around 1,000 people.
Interviewer: You mentioned ongoing discussions for a loan guarantee from France for a new battery factory. How critical is this funding for Lilium’s future?
Alex Roewe: It’s incredibly critical. The loan of €219 million would be vital for our planned projects in France, including the battery factory and assembly line. Successfully securing this funding will help us maintain momentum and continue our development of electrically powered small aircraft.
Interviewer: Given that you have around 700 firm and pre-orders internationally, how optimistic are you about attracting new investors during this challenging time?
Alex Roewe: We remain cautiously optimistic. The interest from various countries, including the USA, UK, and Saudi Arabia, reflects confidence in our technology. By showcasing our existing orders and the unique market we serve, we hope to attract the necessary investments to move forward.
Interviewer: Thank you for your insights, Alex, and best of luck as you navigate this challenging situation.
Alex Roewe: Thank you very much! We’re committed to finding a way through this and appreciate your support.
