Tz_one
JF-Expert Member
- Jun 6, 2017
- 2,962
- 7,856
Kuuza hisa 35% cjui 40 ndo unasema kq wana run
The number of Tanzanian passengers using air transport is very minimal, in fact Kenyans flying to Tanzania ni wengi hata kushinda your local passengers. Na bado uko hapa kutupigia hadithi za ndege. Precision Air run by KQ is the best thing in 255.
Tulia mfunzwe kamare.Kuuza hisa 35% cjui 40 ndo unasema kq wana run
Wana piga makasia lakini boti haiendi. Wamejaribu CEO mzungu mambo bado, wameuza assets shida ziko pale pale, wamepunguza wafanya kazi haijasaidia kitu.Utasikia sasa wale, forced shareholders, KQ lenders association watakavyopiga kelele. Maana sasa ni mwaka wa pili sasa hawajapata gawio na HAMNA dalili za kuonesha watakuja kupata faida.
Hata Wakikuyu ni Wakubangaiza! Wakina Kirubi majambazi waliokubuhu ndo wanakula nchi.Mkenya kama sio Kikuyu huna haki ya kuja kifua mbele kusifia uchumi au maendeleo ya Kenya.Wakikuyu ndio waliokamata nchi.Nyie Waluo endeleeni tu na majigambo ya kwenye Bar,ulevi na ufuska!
Wana piga makasia lakini boti haiendi. Wamejaribu CEO mzungu mambo bado, wameuza assets shida ziko pale pale, wamepunguza wafanya kazi haijasaidia kitu.
Deni bado lipo Kenyan banks n GoK absorbed not more than $300 mln out of $2 bln in that debt to equity exchange. As a matter of fact it was a cosmetic approach to procrastinate debt repayment after maturity.Nilikuambia uonyeshe hio deni 2018 umeshindwa, bado u are surviving in the past.
Mkuu Nairobi imejawa na wakikuyu ndio wanaokula nchi!Hata Wakikuyu ni Wakubangaiza! Wakina Kirubi majambazi waliokubuhu ndo wanakula nchi.
Hakuma muujiza, deni liko pale pale.Deni bado lipo Kenyan banks n GoK absorbed not more than $300 mln out of $2 bln in that debt to equity exchange. As a matter of fact it was a cosmetic approach to procrastinate debt repayment after maturity.
Govt, banks now control 87 per cent of Kenya Airways
State's stake will rise to 48.9 pc from 29.8 pc, while banks’ stake will stand at 38.1 pc
A KQ plane at the Jomo Kenyatta International Airport in Nairobi. FILE PHOTO | NMG
By CHARLES MWANIKI
More by this Author
IN SUMMARY
- Government, banks say they have applied to the Capital markets Authority for exemption from a requirement to make a takeover offer for the airline.
- Debt restructuring plan has been agreed to following long negotiations which saw one bank, Jamii Bora, opt out of converting their loan, and instead choosing to receive their dues over a five year period.
- The Treasury came up with the plan to save KQ from collapse due to the huge negative impact this would have on the economy.
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The Treasury and 10 local banks will control 87 per cent of Kenya Airways (KQ) [HASHTAG]#ticker[/HASHTAG]:KQ under the national carrier’s debt restructuring plan which will see them convert loans of Sh44.2 billion to equity.
The government’s stake under the plan will rise to 48.9 per cent from 29.8 per cent, while the banks’ stake will stand at 38.1 per cent, acquired under a special purpose vehicle known as KQ Lenders Co.
Both say in notices posted Monday that they have also applied to the Capital markets Authority (CMA) for exemption from a requirement to make a takeover offer for the airline, on the grounds that the restructuring is on the basis of rescuing a firm in financial distress in the interest of the public.
“KQ Lenders Co will be issued with new shares in KQ equivalent to 38.1 per cent of the ordinary voting shares in the capital of KQ in consideration for conversion of a portion of the debt being equivalent to $167.24 million (Sh17.2 billion),” reads the notices in part.
“The effect of the debt conversion (by the government of Kenya) is the acquisition of an additional 19.1 per cent of the ordinary voting shares of KQ resulting in the increase of the government’s shareholding from 29.8 per cent to 48.9 per cent.”
Huge impact on economy
The debt restructuring plan that was first mooted in June has been agreed following long negotiations which saw one bank, Jamii Bora, opt out of converting their loan, and instead choosing to receive their dues over a five year period.
The Treasury came up with the plan to save KQ from collapse due to the huge negative impact this would have on the economy, affecting the transport, logistics and tourism sectors which depend on the airline.
A KQ collapse would also cost the economy thousands of jobs, and affect Kenya’s ability to attract investment given that Nairobi’s ease of connection to global cities has been cited as one of the reasons companies base their regional offices in the country.
Banks would suffer immensely as they would have to write off billions of shillings in bad loans and also lose out on other trading income they receive from the airline.
READ: Relief for KQ as Equity now accepts rescue plan
ALSO READ: Banks sue over bid to convert KQ debt billions into shares
Govt, banks now control 87 per cent of Kenya Airways
Kwanini mnakimbia when it comes to discussion on deposing EAA assets. Kama kweli ni Kenya ndio ikitakiwa ipate lion share then sit down and discuss and let the world know.
In your eyes you only saw planes, there is ground equipment, there non removable assents, aircraft hangers, offices, staff housing, pension, insurance even as little pen and paper. EAA was not Kenyan property, it belongs to community regardless who put what. If those assets where to be sold like any other devolved company, everyone would've pickup their slice of profit or loss.Hizi ni assets gani unaongea kuhusu?
The main assets in an airline are the aircraft. They take probably 95% of all assets. For an airline with few planes like EAA, a single plane can mean a huge percentage of total assets.
In this case, one plane was something like 20% of the company.
You should ask yourself. Did Tanzania deserve to retain even a single plane?
If Kenya was funding 100% of the operation, absorbing 100% of all loses, and owed tens of millions of dollars, did Tanzania deserve 20% of EAA?
At most, you should have gotten 0.5% as gratitude for being silent founding partners.
Lakini mkaiba ndege nzima.
In your eyes you only saw planes, there is ground equipment, there non removable assents, aircraft hangers, offices, staff housing, pension, insurance even as little pen and paper. EAA was not Kenyan property, it belongs to community regardless who put what. If those assets where to be sold like any other devolved company, everyone would've pickup their slice of profit or loss.
In your eyes you only saw planes, there is ground equipment, there non removable assents, aircraft hangers, offices, staff housing, pension, insurance even as little pen and paper. EAA was not Kenyan property, it belongs to community regardless who put what. If those assets where to be sold like any other devolved company, everyone would've pickup their slice of profit or loss.
Look, air Tanzania they went into corporation with South African Airway. When things didn't work out we sat down and call it a quits, all assert where distributed according to the formation of the union.I don't know whether you understand accounting.
If EAA was sold, the money would have gone to the people/organizations it owed money to. The major one being Kenya.
That's exactly what happened, only that instead of being sold, Kenya repossessed some aircraft. British Export Credit also took some aircraft.
ATCL with one international destination ambayo hata sio nje ya Africa, hio bado ni local airline. Kumbe Jambo Jet na 540 zinainyosha ile serious.
Look, air Tanzania they went into corporation with South African Airway. When things didn't work out we sat down and call it a quits, all assert where distributed according to the formation of the union.
There so many issues needed to be resolved, one of them is pension. There hundreds and hundreds of community workers haven't been paid their pension because country like Kenya refuse to sit down and resolve the issues. Mnaruka ruka tu with no clear answers, some workers they even died without seeing a cent from their respective organizations. EAA was not the only organization, there other organization such as EA Railways, EA Harbour, EA Post and Telecom, EA Develop Bank etc.
Go to EAC and ask about this issue, is the topic which never been solved and some member brush it off for their own benefit. Sisi wala hatulili hii kitu but we know who to cooperate with, and who to look with caution.Many companies submit employee pension deductions to the National pension fund. In Kenya NSSF.
I assume EAA did the same with its employees, meaning Kenyan employees are owed pension by NSSF and Tanzanians by your own pension fund.
This protects employees in case the company goes under.
But still, in the unlikely situation that EAA was running a private pension fund, it still would have been unable to meet obligations, whether Kenya agreed 'to sit down' or not.
Money could not have been created from thin air. EAA was dead and its assets liquidated by creditors.
For the others, EA Railways, EA harbor etc. I would want a case by case breakdown of finances and what went down. Tanzania has a lot of misinformation and if the case of EAA is proof, it's likely Kenya was singlehandedly funding all these enterprises.
Afterall, only Kenya has been consistently keen on a successful East Africa Community.
Sijui shida ni kutoenda shule au ni kingereza ngumu.Deni bado lipo Kenyan banks n GoK absorbed not more than $300 mln out of $2 bln in that debt to equity exchange. As a matter of fact it was a cosmetic approach to procrastinate debt repayment after maturity.
Govt, banks now control 87 per cent of Kenya Airways
State's stake will rise to 48.9 pc from 29.8 pc, while banks’ stake will stand at 38.1 pc
A KQ plane at the Jomo Kenyatta International Airport in Nairobi. FILE PHOTO | NMG
By CHARLES MWANIKI
More by this Author
IN SUMMARY
- Government, banks say they have applied to the Capital markets Authority for exemption from a requirement to make a takeover offer for the airline.
- Debt restructuring plan has been agreed to following long negotiations which saw one bank, Jamii Bora, opt out of converting their loan, and instead choosing to receive their dues over a five year period.
- The Treasury came up with the plan to save KQ from collapse due to the huge negative impact this would have on the economy.
Advertisement
The Treasury and 10 local banks will control 87 per cent of Kenya Airways (KQ) [HASHTAG]#ticker[/HASHTAG]:KQ under the national carrier’s debt restructuring plan which will see them convert loans of Sh44.2 billion to equity.
The government’s stake under the plan will rise to 48.9 per cent from 29.8 per cent, while the banks’ stake will stand at 38.1 per cent, acquired under a special purpose vehicle known as KQ Lenders Co.
Both say in notices posted Monday that they have also applied to the Capital markets Authority (CMA) for exemption from a requirement to make a takeover offer for the airline, on the grounds that the restructuring is on the basis of rescuing a firm in financial distress in the interest of the public.
“KQ Lenders Co will be issued with new shares in KQ equivalent to 38.1 per cent of the ordinary voting shares in the capital of KQ in consideration for conversion of a portion of the debt being equivalent to $167.24 million (Sh17.2 billion),” reads the notices in part.
“The effect of the debt conversion (by the government of Kenya) is the acquisition of an additional 19.1 per cent of the ordinary voting shares of KQ resulting in the increase of the government’s shareholding from 29.8 per cent to 48.9 per cent.”
Huge impact on economy
The debt restructuring plan that was first mooted in June has been agreed following long negotiations which saw one bank, Jamii Bora, opt out of converting their loan, and instead choosing to receive their dues over a five year period.
The Treasury came up with the plan to save KQ from collapse due to the huge negative impact this would have on the economy, affecting the transport, logistics and tourism sectors which depend on the airline.
A KQ collapse would also cost the economy thousands of jobs, and affect Kenya’s ability to attract investment given that Nairobi’s ease of connection to global cities has been cited as one of the reasons companies base their regional offices in the country.
Banks would suffer immensely as they would have to write off billions of shillings in bad loans and also lose out on other trading income they receive from the airline.
READ: Relief for KQ as Equity now accepts rescue plan
ALSO READ: Banks sue over bid to convert KQ debt billions into shares
Govt, banks now control 87 per cent of Kenya Airways