SFO to look at role of fund in Silverjet failure

The Serious Fraud Office is considering whether to start an inquiry into the collapse of Silverjet, which went into administration at the end of May.

The business-class airline appeared to have escaped bankruptcy in April when Lawrence Hunt, its founder and chief executive, signed an agreement with Viceroy Holdings, of the United Arab Emirates, to borrow up to £8.4 million. The investment fund also planned to take a 28 per cent stake in the airline for £4.3 million. However, when Silverjet tried to draw £2.6 million, the money was unavailable.

A complaint is understood to have been received about Viceroy and the SFO will decide if there are grounds for an investigation. Mr Hunt declined to comment, as did the SFO. Viceroy was unreachable for comment.

Hedge funds hit

SRM, the hedge fund group that took a huge bet on Northern Rock when it was imploding last autumn, apparently has lost 85 per cent of its investors’ money, amid growing evidence of difficult times for many hedge funds. The group recorded a minus 77 per cent performance in the past year.

Brixton reports loss

Brixton, the commercial property owner, reported half-year losses of £236.7 million and said that a lack of sales had led to “confusion and denial” over prices. The half-year deficit, which stems from lower property valuations, compared with profits of £192.3 million a year ago. Net asset value fell 17.8 per cent to 448p a share.