According to a public filing of FORM 6-K to the US Securities and Exchange Commission, as published by the www.publicnow.com website,
“As previously reported, Lilium N.V. (the “Company” or “Lilium”) has been engaged in fundraising initiatives to raise additional cash including from the German government and other sources. On October 17, 2024, Lilium received an indication that the budget committee of the parliament of the Federal Republic of Germany would not approve a EUR50 million guarantee of a contemplated EUR100 million convertible loan for Lilium from KfW. In addition, as of the date of this report, Lilium and the Free State of Bavaria have not reached an agreement in principle with respect to a guarantee of at least EUR50 million. Furthermore, despite its continuous and ongoing fundraising efforts, the Company has not been able to raise sufficient additional funds to continue the operations of Lilium GmbH and Lilium eAircraft GmbH, Lilium’s principal operating wholly-owned German subsidiaries (the “Subsidiaries”). As a consequence, the managing directors of such Subsidiaries have determined that they are overindebted (Überschuldung) and are or will become unable to pay their existing liabilities due (Zahlungsunfähigkeit) within the next few days. The management of the Subsidiaries has informed the Company that they have to file for insolvency under German law and in doing so will apply for self-administration proceedings in Germany.
Subject to certain limited exceptions, the Company will lose control of the Subsidiaries. We are in the process of analyzing the potential implications for the Company resulting from the insolvency proceedings of the Subsidiaries. This includes examining whether obligations exist under applicable insolvency law. The management of Lilium N.V. is continuously reviewing whether there are grounds for its own insolvency as well and the result of any such review may be that Lilium N.V. files for regular insolvency proceedings as well.
“Within the next few days, the Company expects that the Subsidiaries will file for insolvency in the competent court in Germany and apply for self-administration proceeding pursuant to Section 270(a) of the German Insolvency Code. However, there can be no assurances that the applications for self-administration proceedings will be approved by the court.
“As of the date of this report, the Company and the Subsidiaries have a limited amount of cash to conduct their operations. Unless the Subsidiaries receive additional funds, they will not be able to conduct their ongoing operations consistent with past practice and will need to seek financing from third parties including any purchaser of their assets.”
More information can be found at the website address below
https://www.publicnow.com/view/AE2019CF26CD6DA50FF7FA82B3C67CA07E97323D?1729777683