Lilium Shares Hit All-Time Low on Insolvency Concerns

Dow Jones2024-10-25

By Colin Kellaher

Lilium shares lost more than half of their value and hit a new low on Thursday after the air-taxi startup said its two main German units plan to file for insolvency.

Shares of the German company were recently changing hands at 25 cents, down about 54%, after touching an all-time low of 20 cents earlier in the session.

The company, which had been working to secure government funding in German to stay afloat, said the Germany parliament wouldn't approve a 50 million euro ($53.9 million) guarantee of a planned EUR100 million loan from state-owned development bank KfW, and that it hadn't reached an agreement in principle with the state of Bavaria on a guarantee of at least EUR50 million.

Lilium said the managing directors of its Lilium GmbH and Lilium eAircraft unit have determined that they are overindebted and must file for insolvency under German law, which it said would likely mean it will lose control of the units.

The company said it is analyzing the potential implications of the insolvency proceedings of the units, and that it is reviewing whether there are grounds for its own insolvency.

Lilium also warned that the issue could result in its shares being delisted from the Nasdaq Global Select Market or suspended from trading on Nasdaq.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

October 24, 2024 12:40 ET (16:40 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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