1time Needs Financial Rescue

1Time Holdings has filed for business rescue. The airline's board said it required business rescue because it was "financially distressed". The firm has about R320-million in short-term debt and has been in negotiations with creditors since March.
1Time chief executive, Blacky Komani said that the airline would continue scheduled services. The firm has been carrying the debt for two years. "It is money that we owe for services and for some operational costs. We inherited it," Komani said. 1Time's shares have fallen 91% over the past two years, from about 155c a share to close at 14c a share on Tuesday.
In April, the company reported a R157-million loss. "What we need is time to present a turnaround strategy for the business, which will be sold to creditors and investors," Komani told South Africa’s Business Day. "Business rescue gives you protection from creditors that may want to file for liquidation, while you are turning the business around."
Earlier this year, another low-cost airline, Velvet Sky, went into liquidation after failing to convince a court that it was a candidate for business rescue.