South African budget airline 1time Holdings said on Friday it had filed for liquidation and cancelled its flights, after pulling the plug on a rescue plan.
Report by Reuters
The airline, which operated flights within South Africa, said in August it had launched a turnaround plan to right its money-losing business.
“At the board meeting held today… it was recognised and agreed that the business had no reasonable prospect of being rescued,” the company said in a statement to the stock exchange.
Trading in its shares – which have lost 87 percent of their value this year – would be halted, the company said.
Local media reported that hundreds of passengers were left stranded after the airline cancelled all its flights at 3:00 p.m. (1300 GMT).
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The money-losing airline had 16 million rand ($1.85 million)in long-term debt on its balance sheet as of the end of December, according to Thomson Reuters data.
Its total liabilities at the time came to 536 million rand. ($1 = 8.6513 South African rand)
* Small budget airline files for liquidation
* Hundreds left stranded on Friday
* Shares have fallen 87 pct this year (Adds details)