Silverjet gets at least $25 million injection

UK-based all-business class carrier Silverjet has secured at least $25m (£13m) rescue deal from an anonymous Middle East investor.

The unnamed investor is set to invest $25m initially, taking a 28% stake in the group. Under the plan the investor would pump a further $75m into the carrier's future development. However, a full takeover of the airline is still possible, as per the information available.

With this lifeline, the last business class-only airline flying from Britain will be able to keep operating for at least the remainder of this year.

CEO Lawrence Hunt said, "The Eos collapse last week has affected sentiment among travel agents and customers. MAXjet went bust, Eos went bust, so people thought Silverjet would go bust," he reportedly said. He added that the cash should be enough to see the company through to profitability, but he would not say when that would be due in part to the scale of the expansion plans and the high oil price.

Silverjet's new partner is providing the initial investment as a debt and equity package and will receive a 28% stake in the airline. Silverjet's share price has collapsed by 90% since it floated 18 months ago and last year it was losing about £1 million a month.

Under the terms of the rescue deal announced yesterday, Silverjet will issue new equity worth £4.1 million at 17p a share. The airline is now planning new routes to India, South Africa and the US West Coast. Shares were up 2.5 per cent to close at 17p.

The cash comes five months after loss-making Silverjet raised 21 million pounds ($41.35 million), including a 10 million pound loan from property tycoons the Reuben Brothers.