Kenya Airways has recently initiated a turnaround plan to pay off its $2 billion debt after incurring heavy losses. The airline company is also set to brief investors on the first half of its financial year this Friday.
- The Kenyan government, shareholders and 11 local lenders paid off the debts by converting the bulk of it into shares.
- The Government offered contingent guarantees for $750 million of the airline’s debt for 10 years.
- According to former Kenya Airways CEO Mbuvi Ngunze, while referring to the debt restructuring, the company intends to pay less in order to create time to reshape the business and the pay more later.
- He added that he expects the company to move into positive territory next year after the restructuring which diluted all existing shareholders by 95 percent.