1time Falls Most in 3 Months on Rescue Plan: Johannesburg Mover
1time Holdings Ltd. (1TM) fell the most in three months after saying its operating subsidiaries will begin business rescue proceedings and be placed under supervision.
Shares in the South African low-cost airline and technical maintenance company declined 50 percent, the most since May 24, to close at 7 cents in Johannesburg, the lowest since June 8.
There is a “reasonable prospect” of saving the “currently financially distressed” 1time Airline Pty Ltd. and Jetworx Aircraft Services Pty Ltd., 1time said in a statement late yesterday. Rescuing the airline is dependent on enough capital being raised to sustain it through the carrier’s current difficulties, said Keith McLachlan, a senior equities analyst for small and mid-cap companies at Thebe Stockbroking Pty Ltd. in Johannesburg.
“The airline industry locally is really in the perfect storm of low demand, high input costs, increasing competition and the marginal players are the ones most affected,” McLachlan said.
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