White knight for Silverjet
DUBAI – An unnamed UAE-based investor is to inject up to US$100 million in Silverjet to help the airline cope with increased fuel costs and a tightening of credit conditions in the airline industry.
The all-business class airline has entered into a memorandum of understanding with the investor to initially provide around $25 million (£12.7 million) by means of debt and equity.
The airline said the investment will boost its working capital, which has deteriorated, and will also help its “limited†residual reserves.
Under the deal, the investor has also set out its intention to provide up to a further $75 million (£38.1 million) to help the ongoing development of Silverjet.
This will be used to assist the international rollout of the Silverjet brand into new markets within the Middle East, the Far East and Africa.
“Completion of these agreements will secure the future of Silverjet and its long term development,†said a statement.
“In the unlikely event that these agreements are not completed, Silverjet will have to source alternative means of funding as a matter of urgency.â€
Upon completing the investment, the investor will appoint two representatives to Silverjet’s Board of Directors.
Silverjet chief executive Lawrence Hunt said, “This investment places Silverjet in a strong position to further develop our brand and proposition. It is particularly encouraging to have secured this agreement in a challenging environment for all airlines.â€
by Phil Davies
Ian Jarrett
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