Kenya Airways says minority shareholders back restructuring

Kenya Airways has secured the backing of its minority shareholders to issue more shares and convert some debt into equity, it said Monday, despite the opposition of some local lenders. The heavily indebted carrier said in June the financial restructuring plan would help cut debt, reduce finance costs, and help it stay afloat after years of losses. The airline wants 11 local banks to convert their debt into shares through a special purpose vehicle, which will become the second largest shareholder when the restructuring is completed. To do this the airline will increase the number of shares in issue from 1.5b to 7b, board adviser Mbuvi Ngunze told a news conference after a special meeting where small shareholders backed the plan. But some local banks had filed a court case objecting to the plan to turn their debt into equity, he said. "We have been asked not to comment about it (court case), for good reason, but we are optimistic we will have the right approvals to finalise," he said.<br/>