Tokyo Exchange Scraps Daily Trading Limit for Skymark AirlinesKyunghee Park
The Tokyo Stock Exchange scrapped the daily price limits on Skymark Airlines Inc. after Japan’s third-largest carrier filed for bankruptcy.
Starting Feb. 2, Skymark shares will be able to trade without any limits to price movements, the exchange said in a statement on its website today. The stock, which will delist on March 1, plunged by its 80 yen daily limit to 157 yen today.
Skymark filed for bankruptcy Wednesday in Tokyo after its decision to buy six Airbus Group NV A380 superjumbos flopped. The airline, which will get restructuring support from private-equity firm Integral, first flagged in July that there was “material uncertainty” over whether it would remain a going concern following penalty demands for the canceled order.
Doubts about Skymark’s ability to fund the planes had led Airbus to scrap the order worth $2.5 billion in list prices. The carrier is seeking tieups with the nation’s two largest carriers Japan Airlines Co. and ANA Holdings Inc. to survive.
Integral is considering 10 billion yen ($85 million) in funds for Skymark, Kyodo reported, without saying where it got the information.