Volocopter capital needs intensify following loan option stall

Volocopter’s CEO, Dirk Hoke has said the company could be forced to look at insolvency options “in the foreseeable future”, according to German newspaper Süddeutsche Zeitung.

The news follows last week’s confirmation that officials in Bavaria have prevented the approval of state and federal loan guarantees — both for Volocopter and fellow German eVTOL developer Lilium which is based in based in Oberpfaffenhofen near Munich, Bavaria.

Volocopter had initially sought a loan guarantee of €100m from its home state of Baden-Württemberg. After this request was rejected, the firm approached Bavaria with a similar €50m proposal, which if granted would see the company move its headquarters to the state. But this week Bavarian economic minister Hubert Aiwanger voiced opposition to the €50m loan guarantee proposal, which would have also been matched by the federal government.

Bavaria’s Christina Social Union (CSU) accused Aiwanger of blocking Volocopter’s move to Bavaria. “We must not let this unique opportunity pass us by under any circumstances in economically difficult times, otherwise we will gamble away our reputation as an innovative business location,” said CSU parliamentary group leader Klaus Holetschek in Munich last week.

“It is incomprehensible to the CSU parliamentary group that the minister of economic affairs is refusing to give his approval to the federal and state governments for this pioneering Volocopter investment with a possible cluster with other companies.”