Lilium Applies For Insolvency In Germany

eVTOL start-up Lilium has filed for bankruptcy days after the German federal government and the Free State of Bavaria have failed to guarantee $108 million in loans the company needs to stay in operation. In a Form 6-K filing with the Securities and Exchange Commission, Lilium said it's out of cash and can't pay its bills so it's filing for a "debtor-in-possession" form of insolvency that will give it creditor protection while it scrambles to find more money. It's listed on the NASDAQ and was trading at 14 cents Monday, down a penny from Friday close. It's expecting to be delisted.

The company was showing a mockup of its 30-ducted-fan tilt wing design at NBAA-BACE in Las Vegas last week. The aircraft has the individually powered fans integrated into forward and rear lifting surfaces. It was one of the first entrants in the eVTOL market when it announced the unusual design in 2015. It says it has orders for 780 aircraft and partnerships with a host of A-list aerospace companies. “We deeply regret the insolvency and its consequences for all stakeholders at such a crucial stage of our company’s development,” CEO Klaus Roewe said in a news release. “However, while there is no guarantee for success in insolvency proceedings, we hope that the Lilium Jet will get a chance for a fresh start after the self-administration process is completed.”