Kenya Airways Seeks Debt Restructuring to Help Reverse Losses
- First-half loss widens as as passenger revenue stays flat
- Airline to focus on raising funds for business turnaround
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Kenya Airways Ltd., the sub-Saharan Africa carrier part-owned by Air France-KLM, said it’s negotiating with local banks to convert 25 billion shillings ($244.4 million) of domestic borrowings to longer term debt as it strives for financial stability.
The airline, which is also 30 percent owned by the Kenyan government, owes local banks as much as 52 billion shillings, half of which it plans to convert into seven-year debt by next year, Finance Director Alex Mbugua told reporters on Thursday in the capital, Nairobi. The airline also plans to raise $146 million from asset sales as part of the turnaround plan, he said.