A last-minute rescue may have saved innovative startup Lilium, as the company has announced a rescue deal with a consortium of European and North American investors.
“We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough,” Lilium CEO Klaus Roewe said. “Deal closing at the beginning of January will allow us to restart our business.”
Under the terms of the agreement, the consortium – Mobile Uplift Corporation – will acquire the assets of Lilium, giving the startup the funding it needs to resume operations.
The company added that the deal is, of course, subject to the satisfaction of conditions.
Lilium is recalling sacked staff
According to DPA, the company is already making plans to recall around 750 staff who were sacked last week. Reports from German media suggested the layoffs could have been as many as a thousand, although no confirmation was provided by the company.
Lilium had already filed for bankruptcy protection for two of its subsidiaries in October 2024. Part of the agreement involves the restructuring of these subsidiaries so that they can resume activities.
If the deal goes through, Lilium could resume production as soon as mid- to late-January. Undoubtedly, it executives are going to have a much better holiday now.
