UAM developer Volocopter has filed an application for the opening of insolvency proceedings at Germany’s Karlsruhe Local Court
The court has begun the provisional insolvency administration, appointing Tobias Wahl, partner and attorney at Anchor Rechtsanwältegesellschaft, as its administrator.
Volocopter is a pioneer of urban air mobility (UAM), developing electric vertical take-off and landing (eVTOL) aircraft and a digital backbone that connects aircraft, infrastructure, and operators, the VoloIQ. Founded in 2011, the start-up company is nearing the finish line to obtain aircraft type certification and launch its urban eVTOL, the VoloCity.
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.
Business operations will continue as usual during the provisional insolvency proceedings. The provisional insolvency administrator has now held a staff meeting to inform employees about the current situation and answer initial questions about the proceedings. In addition, Tobias Wahl has initiated an investor process. “The company needs financing to take the final steps towards market entry. We will endeavour to develop a restructuring concept by the end of February and implement it with investors,” said Wahl.
