Tuesday , January 25 2022

Fastjet shares down 6% on new alert


Fastjet, the budget African airline, has warned that it could collapse unless investors give money by the end of the month.

The airline issued a warning in October saying that it was close to collapse unless an injection of money happened soon.

In a statement, Fastjet said: "The company continues to review its current reserve requirements and may continue to function in November due to some improvement in trade, cash generation and internal efficiency."

"With the management there is the opportunity for the company to continue discussions with its major shareholders and creditors," added.

"While discussions with some shareholders and creditors have so far been positive, discussions are ongoing and there is no guarantee of a successful outcome."

"If the company can not conduct equity reporting and / or reach an agreement with its central creditors, the Group could not continue to act as a running company."

After the news, the shares in the Group decreased by 6%.

The budget airline was founded by easyJet () founder, Sir Stelios Haji-Ioannou.

The Group has a cash balance of $ 3.9 million (3 million pounds), but $ 3 million is held in Zimbabwe and has limited access.

Stocks fell 70% in June on a previous financial warning after saying that it was "risky not being able to continue trading as a continuing business".

The airline was first launched in Tanzania in 2012 but has expanded across South Africa, Zimbabwe, Zambia, Mozambique, Uganda, Malawi and Kenya.

The shares are currently down 4.11% at 1.68 (1259GMT).

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