German eVTOL aircraft developer Volocopter has begun insolvency proceedings with a court-appointed administrator now overseeing efforts to secure new investment. The company announced the move on December 30 in a statement explaining that it had filed for insolvency with the court in Karlsruhe on December 26.

On December 27, the court appointed Tobias Wahl, an attorney with the law firm Anchor Rechtsanwältegesellschaft, as Volocopter’s administrator. Volocopter, which is one of the original eVTOL pioneers, having been founded in 2011, said it had been forced to take the action after recent fundraising efforts had failed “to find a viable solution to maintain regular operations outside of insolvency proceedings.”

Although business operations continue “as usual during the provisional insolvency proceedings,” the company explained, additional funds will be required to keep the program alive. “The company needs financing to take the final steps towards market entry,” Wahl said. “We will endeavor to develop a restructuring concept by the end of February and implement it with investors.” The administrator has met with employees to explain the situation, while also starting fresh efforts to find new sources of financial backing.

According to Volocopter, it can still complete EASA type certification with the VoloCity during 2025. “We are ahead of our industry peers in our technological, flight test, and certification process,” said Volocopter CEO Dirk Hoke, who is set to leave the company in February. “That makes us an attractive company to invest in while we organize ourselves with internal restructuring.”

On December 24, another German eVTOL pioneer, Lilium, announced a provisional agreement for new investors Mobile Lift Corporation to acquire its assets. The deal could result in its plans to develop the six-seat Lilium Jet being restarted in January. On December 20, all of Lilium's employees were laid off under the terms of German insolvency law.

According to Volocopter, “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 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.”