KEY KENYAN BANK NOW COMES ON BOARD ACCEPTING DEBT AGAINST EQUITY SWAP
(Posted 17th October 2017)
Information received from Nairobi suggests that one of the banks which has been holding out against the government initiated and shareholder approved financial restructuring, which has seen major conversions of dept into equity, is now finally in agreement with the measure.
Equity Bank is said to be ready to sign on to the deal over the next few days and indications are that a second bank which has been holding out, Ecobank, may also have dropped their opposition, probably as a result of intense lobbying by the Kenyan government. Once the deal is consummated will the financial position of Kenya Airways substantially increase, giving the company breathing space to divert attention to other areas such as future network and fleet expansion after having to consolidate on those issues in the more recent past.
Under the deal will the group of banks, which then owns a massive 28 percent of Kenya Airways’ shares through an investment platform created for this purpose, also be able to have representation on the Board of Directors.
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