German electric vertical take-off and landing (eVTOL) manufacturer Lilium will file for insolvency, it said on a SEC filing November 4, 2024.
The company said in the form it had failed to “raise sufficient additional funds to conduct its ongoing business consistent with past practice" and will be filing for insolvency in Germany “soon”.
“The directors of Lilium have determined that a positive going concern no longer exists and the company is therefore overindebted and is unable to pay its existing liabilities when due," it read in the filing.
This follows soon after its subsidiaries Lilium GmbH and Lilium eAircraft GmbH both filed for insolvency on October 28, 2024, after reporting to Lilium they were over-indebted and unable to pay its debts.
The budget committee of the parliament of the Federal Republic of Germany had notified Lilium on October 17, 2024, that it would not approve a €50 million guarantee of a contemplated €100 million convertible loan for the company. In addition, it did not reach an agreement with Bavaria with respect to a guarantee of “at least €50 million”. Lilium said it could not continue the operations of its subsidiaries as a result.
Lilium's subsidiaries filing for insolvency in Germany caused the Nasdaq Listing Qualifications Department to suspend the company's shares from trading on November 6, 2024. The company will file to the US Securities and Exchange Commission (SEC) to delist itself from the Nasdaq Global Select Market.