@Obiero was right about I&M

It is one of the banks being forced to convert their debts into worthless shares in KQ

http://www.businessdaily...0520-88tspaz/index.html

I&M [& all other investees of mine incl Equity and DTB] need to write these loans off. Take the hit and be done.

Forcing banks to convert loans into worthless shares in wrong but mta-do?

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@VVS
Your money and investment is safe with this clause;
"However, if KQ’s share price will not have risen sufficiently to cover their exposure by 2027, the government has guaranteed to step in and pay these local banks a lump sum of $75 million (Sh7.7 billion).
In the case of liquidation, which is what the intricate restructuring plan is trying to prevent, the Treasury will wire Sh28.8 billion to the 11 banks — placing a heavy burden on the economy and taxpayers."

Otherwise KQ is dead dead I don't see it recovering or coming back.
For those waiting share price appreciation sorrryyy
Look at this clause also
"The government is, however, more concerned with the loans owed to local banks since Barclays Bank Plc, Citibank and JP Morgan have the option of selling KQ’s planes to recover their funds with “minimal residual risk to government.”

If it had a problem repaying sh.25bn what about 77bn with competition from SGR in the domestic scene.

Gosh this is bad..

The paper version of Business Daily has the detailed story. It is very clear Banks will convert to equity. There is no rights issue but a new share issue to retire the debt by conversion

Waiting for the loan write offs to find out which bank was swimming naked