Banks That Swapped Kenya Airways Debt Lose Out
- Group of lenders swapped debt for 38.1% of company in 2017
- Kenya Airways is down more than half of debt-equity-swap price
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A group of lenders who swapped Kenya Airways Plc debt into shares almost two years ago betting on a turnaround can’t seem to catch a break.
Just this month, shares of the carrier have fallen 24% and were trading at 2.64 shillings by 2:22 p.m. at the Nairobi Securities Exchange, 66% below the price Equity Group Holdings Plc, KCB Group Ltd. and nine other banks swapped debt for shares. The selloff intensified when lawmakers adopted a proposal for the government to nationalize the airline with no clarity on a buyout price.