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Kenya Airways...why ignore..
Rank: Member Joined: 5/21/2014 Posts: 184
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lochaz-index wrote:Ericsson wrote:Commercial banks that agree to swap their multi-billion shilling debt for a stake in Kenya Airways will be required to lend the airline an extra Sh18.1 billion at an interest rate of about 6.65 per cent, principally to refurbish aircraft engines. http://www.businessdaily...33642-md5wrz/index.html GoK strong arms the banks into yet another rabbit hole. There are guarantees...don't forget.. There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 6/23/2009 Posts: 14,233 Location: nairobi
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actuarywahisa wrote:lochaz-index wrote:Ericsson wrote:Commercial banks that agree to swap their multi-billion shilling debt for a stake in Kenya Airways will be required to lend the airline an extra Sh18.1 billion at an interest rate of about 6.65 per cent, principally to refurbish aircraft engines. http://www.businessdaily...33642-md5wrz/index.html GoK strong arms the banks into yet another rabbit hole. There are guarantees...don't forget.. Yes. Do not forget 10 days to go
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Rank: Chief Joined: 1/3/2007 Posts: 18,354 Location: Nairobi
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[quote=Ericsson]Commercial banks that agree to swap their multi-billion shilling debt for a stake in Kenya Airways will be required to lend the airline an extra Sh18.1 billion at an interest rate of about 6.65 per cent, principally to refurbish aircraft engines. http://www.businessdaily...33642-md5wrz/index.html[/quote] That's flushing away good money after bad money! Which idiots would borrow KES from the public at a minimum of 7% & then lend to KQ at 6.65%? [Is this in $ or KES?] Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,354 Location: Nairobi
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obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Sigh, I see all my (investee) banks are on here!
Equity, NIC, DTB and I&M ... At least I am not in KQ.
Even though it hurts, I am sure they can survive the blow of 100% NPLs coz of KQ. Some may havealready NPL'd part of the loans given to KQ. Your banks are also very weird.. not supporting the good plans by KQ Well, if KQ can service the loans first per the Loan Agreements, then I am sure my banks would look at lending to KQ. Those who approved the loans made to KQ should be fired and sued for professional negligence. I am glad Equity has taken a stand. It's a pity that NIC, I&M and DTB are acting like sheep. @vvs for top tier banks to lend such significant sums shows that there's something about KQ that you don't know. Meanwhile Equity will be bundled into the transaction by votes. Unless they want to reposses a GoK 787.. What options do they really have in auctioning GoK They realized they screwed up by lending KQ a single penny. That money could be sitting in a T-Bond making 11% tax-free without worrying about NPLs, corrupt deals, defaults, restructuring, etc... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,233 Location: nairobi
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VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Sigh, I see all my (investee) banks are on here!
Equity, NIC, DTB and I&M ... At least I am not in KQ.
Even though it hurts, I am sure they can survive the blow of 100% NPLs coz of KQ. Some may havealready NPL'd part of the loans given to KQ. Your banks are also very weird.. not supporting the good plans by KQ Well, if KQ can service the loans first per the Loan Agreements, then I am sure my banks would look at lending to KQ. Those who approved the loans made to KQ should be fired and sued for professional negligence. I am glad Equity has taken a stand. It's a pity that NIC, I&M and DTB are acting like sheep. @vvs for top tier banks to lend such significant sums shows that there's something about KQ that you don't know. Meanwhile Equity will be bundled into the transaction by votes. Unless they want to reposses a GoK 787.. What options do they really have in auctioning GoK They realized they screwed up by lending KQ a single penny. That money could be sitting in a T-Bond making 11% tax-free without worrying about NPLs, corrupt deals, defaults, restructuring, etc... Well at least misery loves company 9 days to go
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Rank: Elder Joined: 6/23/2009 Posts: 14,233 Location: nairobi
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VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Sigh, I see all my (investee) banks are on here!
Equity, NIC, DTB and I&M ... At least I am not in KQ.
Even though it hurts, I am sure they can survive the blow of 100% NPLs coz of KQ. Some may havealready NPL'd part of the loans given to KQ. Your banks are also very weird.. not supporting the good plans by KQ Well, if KQ can service the loans first per the Loan Agreements, then I am sure my banks would look at lending to KQ. Those who approved the loans made to KQ should be fired and sued for professional negligence. I am glad Equity has taken a stand. It's a pity that NIC, I&M and DTB are acting like sheep. @vvs for top tier banks to lend such significant sums shows that there's something about KQ that you don't know. Meanwhile Equity will be bundled into the transaction by votes. Unless they want to reposses a GoK 787.. What options do they really have in auctioning GoK They realized they screwed up by lending KQ a single penny. That money could be sitting in a T-Bond making 11% tax-free without worrying about NPLs, corrupt deals, defaults, restructuring, etc... Well at least misery loves company 9 days to go
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Rank: Elder Joined: 6/23/2009 Posts: 14,233 Location: nairobi
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Had a nasty nightmare that the 75% voting threshold was not achieved, leading to bankruptcy proceedings.. God forbid it
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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VituVingiSana wrote:Ericsson wrote:Commercial banks that agree to swap their multi-billion shilling debt for a stake in Kenya Airways will be required to lend the airline an extra Sh18.1 billion at an interest rate of about 6.65 per cent, principally to refurbish aircraft engines. http://www.businessdaily...33642-md5wrz/index.html That's flushing away good money after bad money! Which idiots would borrow KES from the public at a minimum of 7% & then lend to KQ at 6.65%? [Is this in $ or KES?] The facility will be in dolars. That is why pricing has been set at libor + 5.34%. Quote: Given that the new facility is dollar-denominated, KQ risks seeing its future earnings negatively impacted by foreign exchange losses that have in the past years been troublesome, alongside fuel hedging. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Chief Joined: 1/3/2007 Posts: 18,354 Location: Nairobi
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obiero wrote:Had a nasty nightmare that the 75% voting threshold was not achieved, leading to bankruptcy proceedings.. God forbid it All concerned shareholders of the "msaliti" banks should write to the CEOs of the banks playing ball to reject the offer! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,233 Location: nairobi
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VituVingiSana wrote:obiero wrote:Had a nasty nightmare that the 75% voting threshold was not achieved, leading to bankruptcy proceedings.. God forbid it All concerned shareholders of the "msaliti" banks should write to the CEOs of the banks playing ball to reject the offer! KQ taking massive hits this week.. Sad turn of events, but luckily the inside scoop has been availed from the exchange bar. KES 8 per share is a near certainty. Expect a reprieve rally on the post-election dates, especially if peace prevails
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