Volocopter files for insolvency while seeking investors
Business will continue as usual during provisional insolvency proceedings while Volocopter internally restructures.
VoloCity prototype flight testing in Germany. Source | Volocopter
(Bruchsal, Germany) filed an application for the opening of insolvency proceedings at the Karlsruhe Local Court on Dec. 26, 2024. The court began the provisional insolvency administration the following day.
Founded in 2011, the all-electric vertical takeoff and landing (eVTOL) aircraft startup company is nearing the finish line to obtain aircraft type certification and launch its urban eVTOL, the VoloCity. The company aims to enter the market in 2025 following VoloCity’s successful certification by the European Union Aviation Safety Agency (EASA).
“We are ahead of our industry peers in our technological, flight test and certification progress,” says Dirk Hoke, CEO of Volocopter. “That makes us an attractive company to invest in while we organize ourselves with internal restructuring.”
Numerous successful financing rounds have driven the company’s development and operations in the past. With one of the lowest burn rates in the industry, Volocopter contends that it has successfully operated in an extremely difficult financial environment. However, despite recent intensive fundraising efforts, finding a viable solution to maintain regular operations outside of insolvency proceedings has not been possible.
Business operations will continue as usual during the provisional insolvency proceedings. The provisional insolvency administrator Tobias Wahl, partner, and attorney at Anchor Rechtsanwältegesellschaft mbH, has now held a staff meeting to inform employees about the current situation and answer initial questions about the proceedings. In addition, Wahl has initiated an investor process.
“The company needs financing to take the final steps toward market entry,” he notes. “We will endeavor to develop a restructuring concept by the end of February and implement it with investors.”
For related content, read “AAM startup Lilium to file for self-administered insolvency.”
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