South African low-cost and charter carrier 1time has suspended operations and grounded its aircraft after a financier gave notice it was no longer able to invest in the airline.
Chief executive Blacky Komani says there are "no reasonable prospects of survival" and the airline has to "terminate the business rescue and file for liquidation".
In late October, the airline's parent company, 1time Holdings, posted a first-half headline loss of 35.4 million rand ($4.1 million), compared with a loss of 21.3 million rand during the same period last year.
It attributed this partly to the carrier's failed launch of two new routes in early 2012 - Lanseria and Mombasa - which created losses of 16.8 million rand and 8 million rand respectively.
In August this year 1time Holdings filed for business rescue, an analogous move to seeking US Chapter 11 bankruptcy protection.
1time's business rescue practitioner has sent out a notice to all the airline's creditors and says it will finalise matters in the coming weeks.