Seems that EUJET needs a capital injection of $58m to survive.
The only owner (planestation) who want to continue investing in the carrier "is in severe financial difficulties ". Their bank have refused to give them the cash, so they have decided to float additional company shares to raise the necessary cash at a 20% discount on the current price.
"The Company's bank (Bank of Scotland) confirmed in writing to the UKLA that it would immediately withdraw its support of the Group so that no further finance would be made available to the Company and it would seek to recover any existing loans to the Company and enforce its security in respect thereof"
Problem is that the shares have fallen by approx 30% in the last six trading days already! Shareholders are reducing their exposure to Planestation - will they want to increase it further? Closing date is January 13th - so we will find out then. With their bank withdrawing funding, and three low cost collapses in as many weeks - will investors take the risk?
The following document also provides an interesting link to passenger numbers. Current numbers are running at 7k a week - and at 29 flights a day puts 22k seats into the market per week. 32% load factor. OUCH. As expected the share offering doesnt mention load factors or yield... But I suspect that investors can do their homework.
edited to fix document link
[Edited 2004-12-16 19:54:20]
You are 100 times more likely to catch a cold on a flight than an average person!