Electric vertical take-off and landing (eVTOL) developer Lilium signed an asset purchase agreement with Mobile Uplift Corporation GmbH on December 24, 2024, with the company intending to acquire the operating assets of the Lilium’s subsidiaries - Lilium GmbH and Lilium eAircraft GmbH.
Lilium expects that the agreement will position the subsidiaries to obtain sufficient funding to restart their business operations, with proceeds received from the sale being utilised according to German insolvency law.
This announcement, which was made on December 24, 2024, came four days after Lilium reportedly laid off almost 1,000 employees — nearly all of its staff, according to Grunderszene. The company had not been able to finalise a deal with an investor and let go of its staff on December 20, 2024.
The subsidiaries terminated the contracts of their remaining employees in compliance with German law. These employees are expected to be rehired by Mobile Uplift Corporation GmbH following the initiation of the proceedings and the completion of the transaction.
“We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough," said Lilium CEO Klaus Roewe.
The deal is currently expected to close in early January and is subject to the satisfaction of certain customary conditions precedent, including opening of the proceedings and consent of the creditors committee.