Suitors hope to see Silverjet fly again

Silverjet, the business-class only airline that collapsed into administration last week, has received two tentative bid approaches from suitors interested in relaunching the carrier.

Kingplace, a shelf-company registered in Ireland and managed by Heritage Cie SA, a Geneva trust and management company, has made an indicative offer to administrator Begbies Traynor.

The company, which has expressed an interest in working with Silverjet chief executive Lawrence Hunt, faces competition from an airline.

Mark Fry, joint administrator, said: "They are up against a very serious bidder," but declined to name it. He said: "We are in talks with a couple of bidders and terms are being discussed."

Silverjet, which operated three aircraft flying from London Luton to New York and Dubai, grounded its fleet a week ago.

It collapsed owing creditors £40m, £17m of which is secured against the three aircraft. Of the remaining £23m, £10m is owed to property entrepreneurs Simon and David Reuben. The rest is due to trade creditors. Shareholders have lost everything.

The debt secured against the aircraft could transfer with any new owner, but Mr Fry is seeking some return for the holders of the remaining £23m debt.

"We are looking for a certain amount that will go to the old company's creditors," he said, intimating that the bidders were offering less than £5m.

He believed any non-airline bidder would also need to sink "at least £10m" into Silverjet to get it airborne again.

Ian Ilsley, Heritage chairman, said: "Kingplace can confirm it has made an offer to Begbies Traynor and Lawrence Hunt, with a view to purchasing Silverjet. " How many of Silverjet's 300 staff could be retained is unclear.

Mr Hunt said: "My aim is to see Silverjet up and flying as quickly as possible."

Source: telegraph.co.uk