A group of investors from Europe and North America has agreed to acquire the operating assets of eVTOL aircraft developer Lilium. The German company announced an agreement with Mobile Lift Corporation on December 24, while also confirming reports that on December 20 it had laid off all its employees.

The identities of investors have not been disclosed, but Mobile Lift has been incorporated in Germany as a private company. It is acquiring Lilium’s two German subsidiaries through a transaction expected to close in early January.

The asset purchase agreement is a breakthrough in efforts that started in late October to find new owners for Lilium launched after the German parliament blocked a €50 million loan guarantee that would have unlocked another loan for the same amount from the state of Bavaria. Through “self-administration” insolvency proceedings, a German court appointed KPMG to try to put together a buy-out deal. On November 6, trading in Lilium’s shares on New York’s Nasdaq market was suspended.

KPMG’s efforts to find new owners for Lilium’s efforts to bring its six-passenger Lilium Jet to market in 2026 reportedly included discussions with potential backers in Saudi Arabia. The Mobile Lift group has yet to declare its intentions for the company, with the deal being subject to completion of self-administration process requirements, including the agreement of Lilium’s creditors.

The statement issued early on Christmas Eve said that the agreement “positions the [Lilium] subsidiaries to restart business operations, but did not indicate whether any of the 1,200 employees will be offered new positions. The company said the lay offs had been required to meet the terms of the self-administration laws. None of the funds from the transaction will go to Lilium N.V. holding group incorporated in the Netherlands.

“We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough,” Lilium CEO Klaus Roewe commented. “Deal closing at the beginning of January will allow us to restart our business.”

On December 23, rival eVTOL aircraft developer Vertical Aerospace announced its shareholders had agreed to support a $50 million capital injection by Mudrick Capital. The agreement, which also involves $130 million of debt being converted to equity, is expected to sustain the company through most of 2025.