Shares in Silverjet, the all business class airline operating between London and New York, were today (May 23) suspended on the AIM market of the London Stock Exchange.
The loss-making carrier asked for its shares to be suspended after a promised loan did not arrive.
The $5m which failed to appear was part of an investment agreement Silverjet signed with Viceroy Holdings, a United Arab Emirates-based company on May 6.
In a statement, the UK carrier said that its subsidiary Silverjet Aviation had served notice on May 2 under the loan facility to drawdown $5m.
It added: "Silverjet has yet to receive the full drawdown.
"As announced on 30 April 2008, Silverjet's working capital reserves are limited and advances under the Loan Facility are required as a matter of urgency.
"In the circumstances, Silverjet has requested, and the London Stock Exchange has confirmed, an immediate suspension in the trading of the ordinary shares of the Company on the AIM market of the London Stock Exchange."
The airline said services from London Luton to New York and Dubai would "continue as scheduled" and said it was in talks with "other parties, which have confirmed an interest in investing in the Company.2
Silverjet, which started business in January 2007, is the last of three airlines which started all business class services between London and New York.
MAXjet Airways went out of business last December and Eos Airlines went bankrupt lat month.
The deal Silverjet signed with Viceroy was for the UAE company to provide a £8.4m loan as well as an £4.3m subscription to the carrier.
Silverjet shares have fallen from 180p last June to 13p when they were suspended today.