|
London: Silverjet Plc, the UK airline grounded two weeks ago after funds ran out, was left without a buyer and will fire its workers after a takeover fell through.
Kingplace Ltd., managed by Swiss investment trust Heritage Cie., agreed to buy Luton, England-based Silverjet on June 10. The deal may have failed because the UK Civil Aviation Authority (CAA) requires carriers to have enough cash in reserve to guarantee operations, aviation analyst Howard Wheeldon said.
"Meeting the CAA's requirements might have been a hurdle too far," said Wheeldon, an analyst at BGC Partners in London.
Silverjet, which provided business class-only flights from London to New York and Dubai, ceased flying on May 30 after running out of cash as fuel costs spiralled.
Complex talks
Begbies Traynor Group Plc, responsible for disposing of the carrier's assets, said on Saturday that Kingplace had been unable to conclude the purchase.
"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," Begbies said in a statement. "We have today had to make the entire workforce formally redundant, in line with our legal obligations."
Kingplace's bid for Silverjet, the value of which wasn't disclosed, had been subject to regulatory approval. The CAA, Britain's aviation regulator, requires airlines to have sufficient funding to underpin operations.
Silverjet employed about 300 people, while almost 10,000 customers were affected when it stopped flying, the CAA said.
|
