‘Financially stressed’ 1time enters business rescue
JSE-listed low-cost carrier 1time Holdings’ operating subsidiaries, 1time Airline and Jetworx Aircraft Services, are formally in business rescue, the company said on Tuesday.
Weak economic conditions have caused travel demand to fall, which has exaggerated the effect of excess of capacity in the domestic low-cost market. At the same time airport charges and fuel prices have spiked.
The 1time board of directors said in a statement that 1time Airline and Jetworx were financially distressed.
It added, however, that there "appears to be a reasonable prospect of rescuing these subsidiaries from their current difficulties", and it said it was preparing a business rescue plan.
"Based on this view, the board resolved that the subsidiaries begin business rescue proceedings and be placed under supervision in terms of section 129 of the Companies Act," the statement said.
This decision, it said, would allow the executive directors to develop and implement the business rescue plan.
The resolutions were filed with the Companies and Intellectual Property Commission on Tuesday. The filing date is the effective start date of the business rescue proceedings, according to the Companies Act.
Business rescue practitioners will now be appointed for 1time Airline and Jetworx, under whose supervision they will operate for the next few months.