UK long-haul all-business carrier Silverjet has provisionally secured $25 million in funding from an unnamed UAE investor, boosting its dwindling cash reserves.

London Luton-based Silverjet, which last month notified the stock market of potential acquisition talks, says it signed a memorandum of understanding (MOU) with the new investor on 29 April.

Under the debt and equity deal - which must be approved by Silverjet’s board, shareholders and the UK CAA - the unnamed investor will inject $8 million into the airline in exchange for a 28% stake. It will pay £0.17 ($0.33) per share and will immediately provide the airline with a debt facility.

Silverjet says it expects to enter binding agreements immediately, adding: “Following recent material increases in fuel prices and tightening of credit conditions in the airline industry, Silverjet’s working capital has deteriorated

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