Pressure mounts on AAMG-Lilium takeover deal

Six months after Lilium's insolvency announcement, the future of the company's assets is still in question. A consortium has expressed interest in buying the startup's facilities and technical knowledge, but the deal remains outstanding, the consortium has now leased Lilium's former airport base.

The consortium led by European investment holding company AAMG (Ambitious Air Mobility Group N.V.) is getting serious about its plans to revive the failed aviation startup Lilium. AAMG has now formally applied for a purchase agreement, under the conditions that were announced on Monday: AAMG wants to pay €20 million for the startup’s assets, and holds another €250 million ready to make the company operational again. Another €500 million is apparently also at AAMG’s disposal should further complications arise.

AAMG and its partners have now also leased significant facilities at Oberpfaffenhofen Airport, Lilium’s headquarters. AAMG had placed the last order that Lilium received before its insolvency, and, according to inside sources, AAMG senior partner Robert Kamp has been working on reviving Lilium since its first insolvency announcement.

The spokesperson for the insolvency proceedings has commented on the offer, on the other hand, confirming that talks are underway. However, the conditions for a complete sale have not yet been met. According to information from industry sources, the main issue is the lack of proof of the necessary financing.

AAMG states that it has done this now by mobilising the corporate finance banking partner to support the transaction using a guaranteed, secure financial instrument; this should give the insolvency administrator the assurance that the bank will pay if AAMG defaults on payment.

“We fully understand that the events that led to Lilium being placed in insolvency administration were challenging for everyone involved,” says Dr Robert Kamp, CEO and Senior Partner at AAMG. “However, providing a draft asset purchase agreement to a qualified and committed potential buyer does not involve any costs or risks for the insolvency administrators and is a necessary step to enable progress. Our goal is to protect the value already created, preserve first-class engineering jobs and ensure the continuation of this important European aerospace programme.”

While Lilium’s side has been rather quiet on this subject, the hesitancy is understandable, as the startup’s second insolvency was caused by investors failing to maintain their financial obligations. A spokesperson for the insolvency managers stated their motivations in this deal: “It is crucial that we achieve the best possible sales proceeds in the interests of the creditors. That is the task of the insolvency administrator.”

Source: Info via email, handelsblatt.com (in German)