Overseas banks have carried out an inspection of Kenya Airways’ aircrafts in preparation to repossessing them should it delay to strike a restructuring deal with local banks, the national carrier said yesterday.
In a civil application filed at the Supreme Court of Kenya last month, KQ wants three banks opposed to the debt restructuring process to be compelled to change their mind because it is ‘just and necessary to safeguard the rights and existence’ of the airline.
In an affidavit sworn by KQ’s acting group finance director, Dick Murianki, the airline blames Equity Bank, Ecobank, and Jamii Bora for delaying the restructuring process by filing cases in the High Court and the Court of Appeal.
“I confirm that the failure to determine this application and to set aside the orders granted to the first applicant (Equity Bank) will mean that the airline will in all likelihood imminently cease to operate as the financial accommodation it has been receiving from its creditors was on the basis of the restructuring being completed by end of August 2017,” explained Mr Murianki.
Equity’s action, KQ claims, has delayed the restructuring plan and is jeopardising the entire Sh226.5 billon ($2.2 billion) owed to various creditors.