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Skymark dives 88% as Japan carrier heads for bankruptcy

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Shares in Japan's third largest carrier Skymark Airlines lost nearly 90 per cent of their value Monday after the Tokyo stock exchange scrapped trading limits on the bankrupt firm weeks before it is delisted.

[TOKYO] Shares in Japan's third largest carrier Skymark Airlines lost nearly 90 per cent of their value Monday after the Tokyo stock exchange scrapped trading limits on the bankrupt firm weeks before it is delisted.

Skymark, which last week announced it was headed for court protection, dived to 19 yen (16 US cents), down 87.89 percent from Friday's close.

The plunge came after the exchange scrapped daily loss limits on the embattled stock, which will be removed from the bourse next month.

Skymark announced the bankruptcy filing late Wednesday, citing potentially crippling penalties over a cancelled US$2.2 billion jet order with Airbus.

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The value of Skymark shares halved to 157 yen over the two following days, when trading limits still applied.

Skymark's efforts to turn itself around failed as it struggled against tough competition in the sector, while its woes deepened after the deal with Airbus collapsed in the summer.

Speculative investors may continue trading the shares in a bid to profit from short-term movements.

AFP

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