Silverjet creditors will lose everything

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MONEY LOST: Silverjet's creditors and shareholders will not receive a penny after the airline is purchased by Kingplace, its administers have said. (Supplied)

Silverjet’s creditors and shareholders will not receive a penny after the proposed purchase of the airline from administrators, Arabian Business has learned.

The all-business class airline that ceased operations 13 days ago has been bought by Ireland-based Kingplace, a company managed by Swiss trust Heritage.

But the total amount offered by Kingplace will not cover all of the Luton-based carrier’s trade debt, its administrators said on Wednesday in a telephone interview.

“All of the trade creditors and shareholders are going to lose 100% on their investment,” Mark Fry, joint administrator of Silverjet said.

“Any distribution to the creditors will be marginal from the insolvency."

The airline said on Tuesday that an undisclosed sum had been offered by Kingplace on behalf of private clients.

The terms of the contract have been confirmed by administrators Begbies Traynor subject to contractual completion which is expected by June 13.

“[Silverjet] needs to meet with the CAA (Civil Aviation Authority) to make sure they will be able to meet the requirements to complete the deal,” said Fry.

If regulatory approval is granted the airline expects to take on all of its existing staff and honour its existing customers' tickets, said Ian Ilsley, chairman of Heritage and a director of Kingplace.

Silverjet collapsed into administration following its failure to secure a $5 million loan from Abu Dhabi-based investors Viceroy Holdings.

The company grounded its planes on May 30 after its funds run out as fuel costs soared. The airline never made a profit, and was the only remaining business class-only operator after the collapse of Eos and MAXjet.

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USER COMMENTS (2 COMMENTS)

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Land Rover, Jaguar and now Silver Jet
Posted by kaptain, Dubai, UAE on Friday 13 June 2008 at 11:05 UAE time

England's coinage too should be put on sale.

Earlier businesses like Land Rover, Jaguar have been transferred. Silverjet is yet another achievement gone.

No doubt, the British might have lost the talent in between there somewhere - or is it outsourced to America?

SilverJet Should Give Refunds to Existing Ticket Holders
Posted by Michael Chapman, Pennsylvania, USA on Thursday 12 June 2008 at 06:59 UAE time


If the revived SilverJet is going to honour existing tickets then they should offer a refund to anyone who desires it. It might cost the company 20 million (for 10,000 tickets) but it is the right thing to do.

Many of us have booked flights with other airlines since SilverJet said they were not flying anymore. SilverJet broke the contract between us by ceasing operations and telling us to get refunds through ATOL or our credit card companies.

Since I have re-booked a July flight, I don't want or need the SilverJet tickets. I will be stuck with two sets of tickets (eight altogether) for the same trip. This is just not right. How can an airline force us to buy competitors tickets and then remove all possibilities of getting our money back?

We deserve refunds. Either SilverJet should give all of us refunds or don’t honour the old tickets at all. At least then we can claim relief through other channels.

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