German Flying Taxi Firm Lilium May File for Insolvency
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Lilium NV said its main subsidiaries may be forced to file for insolvency proceedings within days as the electric flying taxi firm struggles to raise enough funding to continue operations.
The subsidiaries have become “overindebted” and won’t be able to pay existing liabilities, according to a filing on Oct. 24.
Management of the units has told the parent company that they will have to file for insolvency under German law and will apply for self-administration proceedings, the filing said.
The move comes after the German government denied Lilium a guarantee on a 50 million-euro ($54 million) loan, which the company argued would have offered Lilium a financial lifeline as it burns through funds.
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