Silverjet Grounded as Rescue Funds Fail to Appear
It hardly seems like a second ago that the directors at business travel airline Silverjet were jumping up and down with relief that they had found a benevolent sugar daddy in the shape of UAE based investment company Viceroy. The company agreed to provide additional capital to see the airline through a troubled patch, in exchange for a substantial stake in the business.
However, the deal which was supposedly worth up to £50 million has floundered at the first hurdle after an initial payment of just £2.5 million was not made.
The situation is shrouded in mystery and, while many people had expressed their surprise when the deal was first announced, it seemed to have been signed, sealed and delivered. The shares were traded on the London Stock Exchange and the future of the group seemed to be secure. The airline directors were surprised when a request for part of the drawdown fund didn’t arrive last week despite repeated requests.
Even just last week the directors at Viceroy were still suggesting that the money would be available soon but just what happened is unknown. After another round of desperate talks with industry heads and external investors, Silverjet management was forced to ground the airline’s operations and suspend dealing in shares on the London Stock Exchange. While many believe that this is not the end of the story, it is the end of the road for Silverjet who have no funds available to continue the business.
Even if there is some recourse in the courts due to the lack of funding made available, it is too little too late for the airline. Another specialist business class airline bites the dust…