Silverjet fails to secure financing – trading of shares suspended temporarily
23 May 2008
London: Business airline Silverjet Plc said its shares have been temporarily suspended from trading on AIM, after its financing remained uncertain as the company has yet to receive the full draw-down of its loan facility. The British, all-business class airline, had announced 1 May that it had signed an MoU with an investor in the United Arab Emirates that will provide it with new funding. (See: All-business class British airline, Silverjet, secures $25m lifeline from UAE investor)
The MoU outlined an investment of $25 million, of which $17 million is debt. The balance $8 million will represent 28% of the enlarged share capital at a price of 17p.
On May 2, Silverjet's wholly-owned unit Silverjet Aviation Ltd. entered into a 8.4-million-pound loan facility deal and the company had entered into a proposed 4.3-million-pound subscription agreement with Viceroy Holdings Llc. Silverjet Aviation served a notice under the loan facility to draw-down about $5.0 million, which it has yet to receive.
However, the company said it now continues discussions with other parties, which have confirmed an interest in investing in Silverjet, and that its services would continue as scheduled.
Silverjet had said in its statement of 1 May that its working capital reserves were limited and that advances under the loan facility were required as a matter of urgency.
