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SIL Silverjet

13.50
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Silverjet LSE:SIL London Ordinary Share GB00B1443S31 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 13.50 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Working Capital Update

30/04/2008 8:03am

UK Regulatory


RNS Number:3969T
Silverjet PLC
30 April 2008


30 April 2008


                  Silverjet plc ("Silverjet" or the "Company")

                             Working capital update

                  Intended initial investment of US$25 million


Silverjet, the British exclusively business class airline, today announces an
update on its working capital position and that it has entered into a memorandum
of understanding (the "MOU") with a UAE based investor (the "Investor").

Following recent material increases in fuel prices and tightening of credit
conditions in the airline industry, Silverjet's working capital has deteriorated
and its residual reserves are limited.

The MOU entered into 29th April 2008 provides that approximately US$25.0 million
(#12.7 million) will initially be invested directly in Silverjet by means of
debt and equity. It is anticipated that the equity element will amount to
approximately US$8.0 million (#4.1million) which will be subscribed at 17 pence
per share; as a result the new ordinary shares will represent approximately 28
per cent of the enlarged share capital. It is expected that a debt facility will
be made available to the Company imminently.

The MOU also sets out the intent by the Investor to invest up to a further US$75
million (#38.1 million) in the ongoing development of Silverjet and to
participate in the international rollout of the Silverjet brand and concept into
new markets within the Middle East, the Far East and Africa.

The Directors anticipate that Silverjet will enter into binding agreements in
respect of this initial tranche of the investment imminently. It is anticipated
that these agreements will be conditional, inter alia, upon Board, and, in the
case of the equity subscription, Civil Aviation Authority and shareholder
approval pursuant, inter alia, to Rule 21 of The City Code on Takeovers and
Mergers (the "Code"). Completion of these agreements will secure the future of
Silverjet and its long term development. In the unlikely event that these
agreements are not completed, Silverjet will have to source alternative means of
funding as a matter of urgency.

Upon completing the investment, it is intended that the Investor will appoint
two representatives to Silverjet's Board of Directors.



Offer period

On 10 April 2008, Silverjet announced that it was in discussions which may or
may not lead to an offer for the issued share capital of the Company.

Silverjet continues to be in an offer period, as defined in the Code, and
accordingly no further information is available.

A further announcement will be made as soon as practicable and Silverjet will
publish its April monthly passenger statistics on Tuesday 6th May.


Lawrence Hunt (Chief Executive of Silverjet) commented:

"We are delighted to have entered into this memorandum of understanding with a
long term strategic investor.

"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. The support of this
investor demonstrates the strength of Silverjet's exclusively business class
model.

"The Board believes that the combination of Silverjet's already strong brand and
presence in the market with the support of a long term strategic investor will
enable Silverjet to continue its growth and success achieved to date."


                                    - ends -


For further information, please contact:

Silverjet                                              020 7357 9477
Lawrence Hunt, Chief Executive

Hogarth Partnership Limited                            020 7357 9477
Fiona Noblet
Sarah Richardson

Arden Partners                                         020 7398 1638
Chris Fielding
Tom Fyson



Notes to Editors

*   Silverjet offers 6 foot 3 inch long inclined flat beds, high quality 
    catering, personalised entertainment and reduced check-in times (30
    minutes with only carry-on baggage) from London Luton to New York Newark
    and Dubai.

*   Incline flat bed at one third of the market price - #1,099 standard
    return fare compared with over #3,000 from competitors.

*   Daily London Luton to New York Newark flights (local time):

         >    Departs LTN at 10.00 arrives 13.00
         >    Departs LTN at 18.00 arrives 21.00
         >    Departs EWR at 19.30 arrives 07.40
         >    Departs EWR at 22.30 arrives 10.40


*   Daily flights London Luton to Dubai (local time):
 
         >    Departs LTN at 21.55 arrives 08.30
         >    Departs DXB at 10.30 arrives 15.45


*   The Silver Lounge is a private terminal at London Luton Airport, opposite 
    the main terminal building, with dedicated security enabling customers with 
    only carry-on baggage to arrive 30 minutes before departure (45 minutes for
    customers with baggage to check in). At New York Newark Airport, the unique
    Silver Lounge offering exclusive check in and lounge facilities is separate
    from the main terminal areas. Silverjet flies into Dubai's executive 
    terminal.

*   Silverjet is the winner of the Sunday Times Award for Best Airline 2007, 
    two Conde Nast Traveller Awards in 2007, one for Favourite Business Class
    Only Airline and one for Design and Innovation and Best Airline Website 2007
    awarded by Travolution.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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