Johannesburg - No-frills airline operator 1time [JSE:1TM]
announced on Tuesday it was applying for business rescue proceedings due to financial
distress at its subsidiary companies.
The board said it was of the view that the company’s
operating subsidiaries‚ 1time Airline Proprietary Limited and Jetworx Aircraft
Services Proprietary Limited were financially distressed‚ as contemplated in
Chapter 6 of the Companies Act‚ but that there appeared to be a reasonable
prospect of rescuing these subsidiaries from their current difficulties and it
was in the process of preparing a comprehensive business rescue plan.
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 board believes the implementation of business rescue
will afford the executive directors the opportunity to develop and implement
the business rescue plan in a manner that will optimise the likelihood of the
subsidiaries continuing to exist as going concerns.
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