Jetlink says it will offer a 51 per cent stake to be shared between the equity investor, the creditors and a firm arranging the debt.
Jetlink Express is set to offer shares to its creditors in a recovery plan that will see the troubled budget carrier receive funding from CFC Stanbic Bank.
In a plan presented to court to stave off a winding up petition, the carrier says it will offer a 51 per cent stake to be shared between the equity investor, the creditors and a firm arranging the debt.
The firm is asking creditors, whom it owes Sh554 million, to write off Sh360 million and convert the remaining 35 per cent debt into preference shares — which it will buy back after five years.
“Jetlink will issue preference shares to listed major creditors at a coupon rate to be agreed upon and split into nominal value equivalent to the reduced debt,” reads the restructuring proposal presented to the court on Friday.
CFC Bank will provide undisclosed working capital that is not meant to be paid to the creditors.
The creditors include Aerotech Limited, KenolKobil, Avmax Spares East Africa and Finejet, which moved to court in March seeking to wind up Jetlink for Sh14 million in unpaid fuel bills.
The creditors have questioned the writing off of the 65 per cent debt, which Jetlink urges is a lesser pain than losing the entire liability if the carrier is wound up.
