News: Silverjet buyout deal collapses
Flights > News > # 1797 (16/06/2008)
The proposed buyout of bankrupt business-class airline Silverjet has collapsed.
Irish investment company Kingplace had provisionally agreed to take over Silverjet, which suspended operations at the end of May after running out of cash.
Silverjet’s administrators Begbies Traynor said Kingplace was no longer in a position to proceed with a deal because of “complex negotiations with third parties.”
It is understood that the Civil Aviation Authority refused to renew Silverjet’s operations license unless it could guarantee it had six months cash flow.
A spokesman for Begbies Traynor said: “As a consequence, we have today had to make the entire workforce formally redundant, in line with our legal obligations.”
“We continue to negotiate the sale of Silverjet's assets for the benefit of the company's creditors and will provide an update as soon as we are able.” Silverjet operated flights from its base at London Luton to New York Newark and Dubai.
Silverjet, which had failed to make any profit since it began operating in 2006, was the last business-class only airline flying between London and New York following the collapse of US rivals Eos and Maxjet.
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