It seems I was too naive offering Silverjet's CEO a cigar. Just a week ago it was, perhaps, one of the luckiest days in Lawrence Hunt's life. However, last Friday, June 13th was a real nightmare for Mr Hunt as the buyout deal with the Swiss investment group collapsed.The whole buyout idea seemed too good to be true at first. Last weekend news broke out in the media that Silverjet failed to secure the buyout deal.
It seemed finally everything was going in the right direction for Silverjet. Unfortunately, the happy ride ended in tears as the company was unable to secure the deal with Investment firm Kingsplace. Following the news, Silverjet (AIM: SIL) laid-off 420 staff.
"We now understand that, 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," it was stated in a press release. Furthermore, the press release went on, "The entire workforce of the airline has now been made redundant and talks continue over the sale of Silverjet's assets."
According to the media, the negotiations were too difficult with third parties. Hit by surging oil prices, Silverjet closed down its operations in May.
SilverJet's administrator Mark Fry said that Kingplace still had interest in the airline, though it was not ready to fund SilverJet's wage bill. He added that other parties were still interested in acquiring the airline.
Wow, what a sad ending of this saga, eh? I think the whole situation at Silverjet was much worse than as related in the media. Mr Fry admitted that the sale of the troubled airliner is unlikely to happen.
Silverjet's saga that ended in tears:
Silverjet's (AIM: SIL) Apocalypse
Silverjet (AIM:SIL) to Land the Deal By This Week?
Swiss Group Rescues Silverjet (AIM:SIL)
Reference
http://www.flysilverjet.com
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