Eleven Kenyan banks are set to convert Sh23 billion in risky Kenya Airways #ticker:KQ loans into shares in a rare restructuring deal fronted by the Treasury that has seen the lenders also commit to advance the struggling airline working capital.
The banks, which include big lenders Equity #ticker:EQTY , KCB Group #ticker:KCB , Commercial Bank of Africa and Co-operative Bank #ticker:COOP , will form a new company (special purpose vehicle) through which they will own shares in the struggling national carrier. Jamii Bora, I&M Bank #ticker:I&M , NIC Bank #ticker:NIC and Ecobank, Chase Bank, National Bank #ticker:NBK and Diamond Trust Bank #ticker:DTK complete the list of lenders that have outstanding loans with the airline.
