Lilium N.V. Appoints KPMG Amidst German Subsidiaries' Insolvency

On November 5, 2024, Lilium N.V., an electric aircraft manufacturer, announced the appointment of KPMG to manage a structured M&A process following the approval of insolvency filings by its German subsidiaries. The local court in Weilheim granted Lilium the right to self-administer during preliminary insolvency proceedings aimed at business preservation. Lilium aims to attract fresh investment to support the Lilium Jet's path toward certification and operational readiness. Under this court order, management remains in charge, supported by the restructuring expertise of KPMG and provisional custodian Ivo-Meinert Willrodt. These steps are crucial for Lilium as they seek to restructure and stabilize their operations amidst financial turmoil. The company has been actively working on developing its all-electric Lilium Jet, with the first two units nearing completion and scheduled to undergo rigorous testing. The announcement comes alongside NASDAQ's notification regarding the suspension of Lilium's shares and warrants, effective November 6. Lilium’s leadership expressed determination to overcome these challenges while continuing to meet program milestones, including the Lilium Jet's manned flight and certification processes. With a dedicated team of engineers working towards achieving these goals, Lilium is focused on re-emerging from this crisis with strong support from its partners and investors. This restructuring and M&A process illustrates the precarious state of the aviation industry, especially for new entrants like Lilium, who are striving for innovation while encountering significant operational and financial hurdles.