Kenya Airways mulls debt-to-equity deals to ease pain
Kenya Airways is considering debt-to-equity deals as one of the possible solutions to its ongoing financial woes. The revelation comes as the struggling carrier's financial standing worsened last week after it reported its fourth straight annual loss. For the year ending March 31, 2016, Kenya Airways posted a net loss of US$262m which it blamed on a strengthening US dollar, increased borrowing costs as well as fuel hedge losses. In all, it’s state of negative equity has now worsened to $357m. Despite the negative news, The EastAfrican newspaper says treasury cabinet secretary Henry Rotich revealed last week that private equity investors had shown an interest in investing in the airline. It is within this context that a debt-to-equity scheme would also be considered, the paper said referencing informed sources. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-07-27/sky/kenya-airways-mulls-debt-to-equity-deals-to-ease-pain
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Kenya Airways mulls debt-to-equity deals to ease pain
Kenya Airways is considering debt-to-equity deals as one of the possible solutions to its ongoing financial woes. The revelation comes as the struggling carrier's financial standing worsened last week after it reported its fourth straight annual loss. For the year ending March 31, 2016, Kenya Airways posted a net loss of US$262m which it blamed on a strengthening US dollar, increased borrowing costs as well as fuel hedge losses. In all, it’s state of negative equity has now worsened to $357m. Despite the negative news, The EastAfrican newspaper says treasury cabinet secretary Henry Rotich revealed last week that private equity investors had shown an interest in investing in the airline. It is within this context that a debt-to-equity scheme would also be considered, the paper said referencing informed sources. <br/>
