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Billionaires step back from taking Silverjet stake
A company run by billionaire property development brothers David and Simon Reuben has confirmed that it will not be taking a stake in Silverjet.
Instead of taking an equity share in the all-business class airline in exchange for £10 million, the brothers’ company TFB Mortgages is to loan the money. It will need to be repaid on December 17, 2009.
The convertible loan was secured by the airline as part of a £22 million fundraising in November.
“Silverjet today announces that TFB will not be converting its £10 million convertible loan into new Silverjet ordinary shares at 60 pence per share,” a statement said.
TFB said: “Because of recent market conditions, we have decided not to exercise our right to convert our loan to Silverjet into equity.
“Instead we will continue to work with the company and monitor its performance going forward.
“We continue to believe the company has a sound business model and excellent prospects for the future to become a major player in the global aviation business.”
Silverjet CEO Lawrence Hunt said: “We have a strong relationship with the Reuben brothers with whom we structured a loan of £10 million, at highly attractive rates which are highly beneficial to our business; and we are also working together on a number of joint projects relating to the future development of Silverjet.
“As ever, our primary focus is to continue driving passenger numbers and yields, thereby restoring shareholder value.
“Based on bookings made to date, we are highly confident that our February load factor will exceed 60% at an increased yield. Forward bookings beyond February continue to be strong.”
by Phil Davies
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