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Kenya Airways completes $2 billion debt restructuring

Staff Writer |
Kenya Airways has finished restructuring $2 billion of debt, the carrier said, completing a key part of its turnaround plan after heavy losses.

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The airline's top shareholder, the Kenyan government, and 11 local lenders converted the bulk of their debts into shares, helping to relieve cash flow pressure.

That figure includes full commitments to financiers and operating aircraft leasing companies, which are not normally reflected in the balance sheet, he said.

As part of its assistance to the company's revival efforts, the government also offered contingent guarantees for $750 million of the airline's debt for 10 years.

Kenya Airways, which is part owned by Air France KLM, posted the country's biggest ever annual corporate loss of 26 billion shillings ($251 million) in its 2016 financial year, hit by a slump in travel and high financing costs after buying new Boeing planes.

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