Kenya Airways: Scope of Debt Restructuring

The Kenyan government agreed to take over external debt contracted by Kenya Airways prior to December 31, 1993.  This debt, denominated in various foreign currencies, amounted to KShs 4.6 billion or US$143.7 million.  In addition, the government agreed to convert into equity  KShs 1.6 billion of advances that it had made to Kenya Airways.  Kenya Airways remained with approximately KShs 4 billion in debt arrears that it would continue to service.

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