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Silverjet suspends operations as deal falters
The Associated Press
Friday, May 30, 2008
LONDON: Silverjet suspended operations Friday because a key funding deal for the British business class airline failed to materialize.
Silverjet flew between its base at Luton Airport, near London, to Dubai and Newark, New Jersey. It said discussions with possible investors were continuing but no new financing had been secured.
Silverjet, which suspended trading in its shares a week ago, said its last flight departed Dubai on Friday morning.
The carrier said it had not received money agreed upon under a £12.7 million, or $25.1 million, deal recently signed with Viceroy Holdings, an international luxury development fund based in the United Arab Emirates and the United States.
Silverjet had sought an initial installment of $5 million from the deal's loan facility on May 2, but did not get it.
"Silverjet has not received any further sums from Viceroy," the company said Friday.
"Silverjet continues to be in discussions with investors interested in supporting the business of Silverjet, however it has yet to conclude such discussions to its satisfaction," the company said.
The announcement pushed Silverjet to the brink of sharing the fate of U.S. peers MAXjet Airways and EOS, which also started business-only services from London to New York in 2006.
MAXjet was the first to fold, filing for bankruptcy protection late last year after failing to find the necessary funding to stay in business. EOS took the same steps last month.
When it unveiled the debt-and-equity deal with Viceroy last month, Silverjet said that it would need to find funding urgently if the investment did not come off, with its working capital and residual reserves suffering amid the tough market conditions and soaring cost pressures.
Silverjet shares, which trade on the Alternate Investment Market, were down 5.5 percent at 13 pence efore being suspended. They had been trading above 175 pence a year ago.
The Associated Press
Friday, May 30, 2008
LONDON: Silverjet suspended operations Friday because a key funding deal for the British business class airline failed to materialize.
Silverjet flew between its base at Luton Airport, near London, to Dubai and Newark, New Jersey. It said discussions with possible investors were continuing but no new financing had been secured.
Silverjet, which suspended trading in its shares a week ago, said its last flight departed Dubai on Friday morning.
The carrier said it had not received money agreed upon under a £12.7 million, or $25.1 million, deal recently signed with Viceroy Holdings, an international luxury development fund based in the United Arab Emirates and the United States.
Silverjet had sought an initial installment of $5 million from the deal's loan facility on May 2, but did not get it.
"Silverjet has not received any further sums from Viceroy," the company said Friday.
"Silverjet continues to be in discussions with investors interested in supporting the business of Silverjet, however it has yet to conclude such discussions to its satisfaction," the company said.
The announcement pushed Silverjet to the brink of sharing the fate of U.S. peers MAXjet Airways and EOS, which also started business-only services from London to New York in 2006.
MAXjet was the first to fold, filing for bankruptcy protection late last year after failing to find the necessary funding to stay in business. EOS took the same steps last month.
When it unveiled the debt-and-equity deal with Viceroy last month, Silverjet said that it would need to find funding urgently if the investment did not come off, with its working capital and residual reserves suffering amid the tough market conditions and soaring cost pressures.
Silverjet shares, which trade on the Alternate Investment Market, were down 5.5 percent at 13 pence efore being suspended. They had been trading above 175 pence a year ago.
