Is this the beginning of the end for Maxjet?

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Troubled all-premium operator Maxjet Airways says it will give “some kind of update in the next few days”. The announcement follows the suspension of Maxjet’s share trading on the Alternative Investment Market (AIM) of the London stock exchange, pending clarification of its financial position. MAXjet says it will continue to operate all its flights and advanced bookings remained strong.

Silverjet says it will honour Maxjet tickets and has converted over 100 one-way tickets that were booked on its rival. Then the airline reported a  20% surge in bookings since Maxjet’s announcement.
For the interim period ended 30 June 2007 Maxjet Airways posted a $31.9 million operating loss. Revenues for the period totalled $27.3 million, marking a 74% improvement, while operating expenses increased by 30% to $59.2 million.

In June, MaxJet Airways raised $93.7 million on the London Alternative Investment Market some after placing 36.6 million common shares at £1.38 per share. In connection with the AIM offering, all preferred stock converted to common and all debt was retired.

Prior to admission MaxJet had outstanding $6.8 million of preferred stock, $9.7 million of convertible debt (Term A, including PIK interest), $30.5 million of non-convertible debt (Term B) and a $1.5 million credit facility.

After retiring debt, the airline had $50.3 million in unrestricted cash as of 30 June 2007.
Silverjet saw interim pre-tax losses widened to $27 million but like MaxJet, the carrier is upbeat on its load factor and yield performance. It held £14.5m cash (including restricted cash) at 30 September and proposed placing of £12m (gross) and a proposed convertible loan of £10m.