Lilium Launches Post-Insolvency M&A Process with KPMG; Trading of Shares and Warrants Will Be Suspended Starting Tomorrow (Nov. 6)

(Munich, Germany) Electric vertical takeoff and landing jet developer Lilium (NASDAQ: LILM) announced this morning that it has appointed KPMG to conduct its post-insolvency M&A process, and that the first investor briefings will begin soon.

Photo of Lilium employees alongside the aircrame of a Lilium Jet courtesy of Lilium on Instagram, @liliumaviation.

Lilium’s appointment of KPMG took place following the local court of Weilheim’s approval of the insolvency filing of Lilium’s German subsidiaries and the court’s granting of Lilium’s application for self-administration, according to today’s press release from Lilium.

On October 24th, Lilium announced that its main subsidiaries were filing for insolvency under German law after the company’s application for €100 million (US$108 million) in government loans from the governments of Germany and Bavaria was refused per the final decision of the Bundestag.

Lilium has been notified by NASDAQ that trading of the company’s shares and warrants will be suspended at the opening of business tomorrow, November 6th; following the trading suspension, the Company’s ordinary shares may commence training over-the-counter, which, according to Lilium, may result in significantly lower trading volumes and could further depress the share price.

Per Lilium, the Local Court of Weilheim has appointed to the German subsidiaries’ Boards of Management with immediate effect two restructuring-experienced lawyers, Prof. Dr. Gerrit Hölzle and Dr. Thorsten Bieg, as Chief Insolvency Officers (CIOs). Today’s press release explains that both CIOs have successfully advised a large number of companies in crisis situation; most recently, they worked for Senvion and The Social Chain AG, among others.

The local court also appointed attorney Mr. Ivo-Meinert Willrodt, Managing Partner at PLUTA Rechtsanwalts GmbH, as the provisional custodian – per Lilium, Willrodt’s role is to protect the interest of the creditors in the proceedings.

Lilium CEO Klaus Roewe commented: “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 into service.” 

Today’s release explains the work at Lilium’s subsidiaries continues, with more than 1,000 employees working toward progressing toward the company’s next significant program milestone: first manned flight. The first two Lilium Jets are currently on the final assembly line – with the first aircraft having recently completed the initial low-voltage power-on milestone and due to advance into its ground testing phase – and the fuselage and wings of the third aircraft are currently in assembly at at aerostructures suppliers Aciturri and Aernnova, according to Lilium.

At the end of October, a conforming Lilium Jet airframe was moved into a static test rig for structural testing, which is, according to Lilium, an essential part of the testing plan for first manned flight and type certification.

Photo of a Lilium Jet structure test courtesy of Lilium.

Lilium’s current order pipeline consists of firm orders, reservations, options, and memoranda of understanding for more than 780 Lilium Jets to operators in the U.S., South America, Europe, Asia, and the Middle East. 

Lilium Jet Specs (per Aerospace Technology):

Capacity: 7, including one pilot
Range: ~ 250 km (155 mi)
Cruise speed: 280 km/h (~ 173 mph)
Propulsion: Fully electric