advertisement

Companies

KQ to conclude rescue plan in two weeks

Kenya Airways chairman Michael Joseph. FILE PHOTO | NMG
Kenya Airways chairman Michael Joseph. FILE PHOTO | NMG 

Kenya Airways (KQ) #ticker:KQ expects to conclude its financial restructuring plan in a fortnight after commercial banks originally opposed to converting their loans into equity finally accented to a redrafted deal.

Michael Joseph, the airline’s chairman, in a Friday interview said a more equitable plan had been drawn up and all parties were taking turns signing their respective agreements.

“I understand several parties have signed but not all. I expect that we should be done in one or two weeks,” Mr Joseph said. “After everybody has signed, we shall move on to the next bit of the restructuring plan which is the rights issue and the employee stock ownership plan.”

Equity Bank #ticker:EQTY, Jamii Bora and Ecobank opposed a push to have them convert Sh6.4 billion in risky loans to shares.

National Bank of Kenya #ticker:NBK, Co-operative Bank #ticker:COOP, CBA, NIC Bank #ticker:NIC, DTB #ticker:DTK, KCB #ticker:KCB, I&M, and Chase Bank, collectively owed Sh16.3 billion, are also agreeable with the new deal.

advertisement