Eleven banks get $223m Kenya Airways shares in bailout plan

Eleven Kenyan banks are set to convert Ksh23 billion ($223 million) in risky Kenya Airways loans into shares in a rare restructuring deal fronted by the Treasury that has seen the lenders also commit to advance the struggling airline working capital.

The banks, which include big lenders Equity, KCB Group, Commercial Bank of Africa and Co-operative Bank, will form a new special purpose company through which they will own shares in the struggling national carrier. Jamii Bora, I&M Bank, NIC Bank and Ecobank, Chase Bank, National Bank and Diamond Trust Bank complete the list of lenders that have outstanding loans with the airline.