German flying taxi company Lilium, once valued at over £2.5 billion, is on the brink of bankruptcy after the German government blocked crucial funding.
Lilium announced it would pursue self-administration, a type of insolvency allowing it to seek buyers or additional funding, after failing to secure two £42 million loan guarantees—one from a state-owned bank and another from the Bavarian government.
Founded in Munich, Lilium raised £1.2 billion and went public in New York in 2021.
Its electric vertical takeoff and landing aircraft was designed to carry six passengers over 109 miles, with speeds up to 154 mph, but production delays and cash shortages hampered progress.
Despite an order from Saudi Arabia and investments from Tencent and Baillie Gifford, Lilium warned earlier this month it would need to cut costs if state funding did not materialise, the Reuters news agency reported.
The article said CEO Klaus Roewe had criticised the Bundestag for abandoning German engineering talent, as private investors sought government support to continue backing the company.