Silverjet rescue bid fails; all staff made redundant
14.06.08
Luton Airport based all business class airline Silverjet, grounded two weeks ago after it ran out of funds, was left without a buyer and made its 420 staff redundant yesterday after a planned takeover fell through.
Kingplace, an Irish registered shelf company managed by Swiss investment trust Heritage Cie representing unnamed private investors, agreed to buy Silverjet on Tuesday. However, the deal was subject to regulatory approval, and failed because the UK Civil Aviation Authority wanted the company to have more cash in reserve to guarantee operations than the new investors were prepared to put up, plus there was a dispute over plane hire. The buyer may have needed to raise £100m for Silverjet to survive over the next year, one analyst said.
Joint administrator Mark Fry added: ‘As a result of the unusually complex negotiations with third parties, Kingplace is no longer in a position to acquire Silverjet as a going concern. We have today had to make the entire workforce redundant, in line with our legal obligations.’
The 420 Silverjet workers - 370 pilots and cabin crew and 50 administrative staff at its Luton Airport base - were warned of likely redundancy two weeks ago when the airline ceased flying. Talks continue on the sale of Silverjet's assets, both with Kingplace and other potential investors, but it now appears unlikely the airline will ever resume flights.
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