Kenya Airways restructures in debt-for-equity swap
Kenya Airways will be almost 90% owned by the Kenyan govt and a group of 11 local banks under a restructuring deal unveiled Monday after the terms of a debt-for-equity swap for the lossmaking airline were finalised. The country’s govt will own 48.9% of Kenya Airways and the banks 38.1% after the swap, agreed in principle in June. The big losers under the deal appear to be the minority shareholders. Air France-KLM, which owned 26.7%, will now own 7.8%. All other shareholders, which previously owned 43.5% of the company, will be diluted down to 5.2%, according to Henry Rotich, Kenya’s finance minister. Rotich insisted the deal was not a bailout. “The govt expects a return on its investment once the company returns to profitability,” he said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-11-14/sky/kenya-airways-restructures-in-debt-for-equity-swap
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Kenya Airways restructures in debt-for-equity swap
Kenya Airways will be almost 90% owned by the Kenyan govt and a group of 11 local banks under a restructuring deal unveiled Monday after the terms of a debt-for-equity swap for the lossmaking airline were finalised. The country’s govt will own 48.9% of Kenya Airways and the banks 38.1% after the swap, agreed in principle in June. The big losers under the deal appear to be the minority shareholders. Air France-KLM, which owned 26.7%, will now own 7.8%. All other shareholders, which previously owned 43.5% of the company, will be diluted down to 5.2%, according to Henry Rotich, Kenya’s finance minister. Rotich insisted the deal was not a bailout. “The govt expects a return on its investment once the company returns to profitability,” he said. <br/>
