Pinsent Masons advises on the insolvency proceedings of German aerospace start up Lilium

The Pinsent Masons team advised the administrator on the conclusion of an agreement with the other two Lilium entities to facilitate the sale of Lilium group’s patents to a group of investors who eventually acquired Lilium’s business on 24 December 2024.

Lilium is a German start up known for developing sustainable, high-speed air mobility through its electric vertical take-off and landing (eVTOL) “urban taxi” aircrafts. In October 2024, Lilium filed for insolvency after running out of funds and a refusal by the German government approve a EUR 100m loan by KfW bank.

In a last-minute turnaround, a purchase agreement was signed with Mobile Uplift Corporation, a consortium of experienced investors from Europe and North America in December 2024. This agreement, which includes an investment of over 200 million euros, aims to finance Lilium until it enters the market and reintegrate the 750 employees who were previously laid off. The deal is expected to close in January 2025, pending customary conditions.

Advisor insolvency administrator to Lilium N.V.: Pinsent Masons

Dr. Attila Bangha-Szabo (lead; Legal Director) and Vera Bremer (Associate) – both Dispute Resolution, Munich

Lilium’s original company mission is to create a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium aims at accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia. Founded in 2015, Lilium’s headquarters and manufacturing facilities are in Munich, Germany.