Oberpfaffenhofen, Germany — German electric air taxi developer Lilium has hit another roadblock in its effort to restructure, after the proposed sale of its assets to the Ambitious Air Mobility Group (AAMG) stalled when the buyer failed to provide a key financial guarantee.
The company’s insolvency administrator, Pluta Rechtsanwalts GmbH, confirmed this week that progress has halted because AAMG has not delivered the bank guarantee required to move forward with purchase contract negotiations. The condition is standard in transactions of this nature, but its absence leaves Lilium’s future hanging in the balance.
A Company in Insolvency
Lilium, once one of Europe’s most high-profile startups in the electric vertical takeoff and landing (eVTOL) sector, entered insolvency in October 2024 after exhausting its funding options. Its two key subsidiaries, Lilium GmbH and Lilium eAircraft GmbH, entered self-administration proceedings when the German government rejected a €50 million federal guarantee that would have unlocked a larger loan package from state development bank KfW. Bavaria had agreed to cover the remaining half of the guarantee, but the federal Budget Committee’s refusal sealed the company’s fate.
The setback forced Lilium to seek protection from creditors while exploring options for asset sales. Provisional administrator Ivo-Meinert Willrodt of Pluta was appointed to lead the process. Since then, the firm has been in talks with multiple interested parties, while attempting to preserve its intellectual property and facilities.
Founded in 2015, Lilium attracted more than $1 billion in private investment for its vision of a zero-emission aircraft, the Lilium Jet, designed to revolutionize short-range travel in congested urban regions. But steep development costs, shifting regulations, and missed funding deadlines have left the project in limbo.
The AAMG Offer
In August 2025, Ambitious Air Mobility Group emerged as a prospective buyer, presenting itself as a well-financed industry consortium. AAMG announced €250 million in committed capital and claimed to have access to a further €500 million. The group also highlighted partnerships with Japan’s Airmobility Inc. and a major Dutch bank, while taking the step of leasing facilities at Lilium’s Oberpfaffenhofen headquarters.
On September 18, AAMG sought to reassure stakeholders, stating it had signed a “trust agreement” and prepared a draft asset purchase agreement. “We remain confident in our ability to move this transaction forward,” the group declared.
Pluta, however, countered those claims, stressing that a fundamental requirement was still unmet. Without the bank guarantee, the administrator said, no binding agreement can be executed. The result is a widening gap between AAMG’s public optimism and the administrator’s more cautious assessment.
Previous Rescue Attempts Falter
The current uncertainty follows a string of failed rescue plans earlier this year. In January 2025, an effort to transfer assets to a newly formed entity—initially named MUC Mobile Uplift Corporation GmbH, later rebranded as Lilium Aerospace GmbH—collapsed amid administrative delays and contract disputes. By February, Lilium announced redundancies and ceased flight operations when new investment failed to materialize.
These repeated failures illustrate the challenges facing companies in the eVTOL sector. Despite widespread enthusiasm for electric air mobility, the industry remains capital intensive, with long development timelines and uncertain regulatory pathways. For Lilium, the setbacks have been particularly costly given its once high-profile positioning as a European pioneer.
Uncertain Future
Pluta has indicated that talks with other potential buyers remain ongoing, suggesting that the administrator is not solely reliant on AAMG. Both full and partial asset sales are being considered, depending on the financial and operational capabilities of interested parties. Still, time is running short. Without a guarantee from AAMG or a credible alternative bid, the company could face liquidation of assets or even complete shutdown.
The stakes extend beyond one company. Industry analysts note that Lilium’s struggles highlight structural risks in the eVTOL market. While demand projections remain strong, even well-funded developers face headwinds in navigating costs, certification hurdles, and political uncertainty.
For now, the administrator’s stance is clear: the deal cannot advance without the bank guarantee. Until that hurdle is cleared, Lilium’s revival remains suspended in uncertainty.
