Banks reject Kenya Airways’ stake offer
Some banks opposed to the restructuring of Kenya Airways Thursday threw a spanner in the works, obtaining a court order to nullify resolutions endorsing the plan. Kenya Airways management Thursday met creditors, including the govt and 11 lenders, and resolved to convert the combined KES50.2b debt owed them by the airline into shares. However, the resolutions of the meeting were nullified by a ruling in a petition filed by some of the lenders pending a hearing next week. “Someone successfully filed a court injunction until the matter is heard Aug 10,” a source said. The carrier had forced an affirmative vote from most of the lenders. However, Equity Bank, Jamii Bora Bank, and Ecobank dissented. Kenya Airways needed at least 75% of the creditors, with a cumulative unsecured debt of KES37.65b, to okay the deal. <br/>
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Banks reject Kenya Airways’ stake offer
Some banks opposed to the restructuring of Kenya Airways Thursday threw a spanner in the works, obtaining a court order to nullify resolutions endorsing the plan. Kenya Airways management Thursday met creditors, including the govt and 11 lenders, and resolved to convert the combined KES50.2b debt owed them by the airline into shares. However, the resolutions of the meeting were nullified by a ruling in a petition filed by some of the lenders pending a hearing next week. “Someone successfully filed a court injunction until the matter is heard Aug 10,” a source said. The carrier had forced an affirmative vote from most of the lenders. However, Equity Bank, Jamii Bora Bank, and Ecobank dissented. Kenya Airways needed at least 75% of the creditors, with a cumulative unsecured debt of KES37.65b, to okay the deal. <br/>
