Silverjet still hopeful of funding
27.05.08
Luton Airport based all business airline Silverjet is still hopeful it will receive its £12.6 million rescue package as its backers ‘are still keen to invest’, a spokesman told travelmole.com this morning.
The airline requested that its shares be suspended from the London stock market on on Friday because of delays in receiving the money it needs to keep flying. The airline said it had yet to receive a $5m draw down from a planned loan it was expecting on May 2, and that this casts doubts on further planned loans of £8.4 million and a £4.3 million investment from Dubai-based international luxury development fund Viceroy Holdings. It is not known why Viceroy has not provided the funds.
The spokesperson for Silverjet said: ‘There will be an announcement in the next few days. Our investors are still in place but there is a problem their end with the loan. Meanwhile we would like people to know that we are still flying.’
However, whilst the airline remains positive, Mike Stoddart of city firm Daniel Stewart, a persistent critic, predicted it unlikely that Silverjet's shares will regain a listing. In a research note issued on Friday he said: ‘We estimate that it costs over £44,000 in fuel alone for a round trip to New York on a Silverjet Boeing 767, up from £28,600 at the time of the November 2007 fund raising. Against this background, we do not think anyone will bid and that, for Silverjet to survive, current shareholders will need to inject large amounts of fresh equity.’
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