A group of investors has brought Lilium back to life just days after the electric air taxi startup shut down and let go of about 1,000 employees. Mobile Uplift Corporation, a company formed by investors from Europe and North America, has agreed to purchase the business operations of Lilium’s two subsidiaries, Lilium GmbH and Lilium eAircraft GmbH, according to an announcement made on Tuesday.
The main company, Lilium N.V., will not receive any money as per German insolvency law. The terms of the agreement, expected to be finalized in January, were not disclosed. Consultancy firm KPMG managed the sale process for Lilium. Mobile Uplift Corporation stated in the announcement that they plan to rehire workers who were laid off right after the proceedings began and the transaction closed. It remains uncertain if all 1,000 employees will be rehired.
Upon being contacted for a statement by TechCrunch, Lilium spokesperson Christine Pierk did not share any new information or respond to questions about the deal. Once the deal is complete, the new owners aim to restructure Lilium, enabling the company to emerge from insolvency with its technology intact and no outstanding debts.
“We are excited to announce the signing of an investment agreement with a highly experienced group of investors, which marks a significant breakthrough,” stated Lilium CEO Klaus Roewe in the announcement. “Closing the deal at the start of January will allow us to relaunch our operations.”
Lilium had secured over $1 billion from private investors before going public in 2021 on the Nasdaq Exchange through a reverse merger with a blank-check company, SPAC Qell. The company had gained traction with customers, including a 100-plane order from Saudi Arabia. However, Lilium burnt through cash faster than it could bring in more funds from investors while developing a vertical take-off and landing (VTOL) aircraft capable of speeds up to 100 km/h. Lilium filed for insolvency — similar to bankruptcy in the U.S. — in October after failing to secure emergency funding.
