Totally.. The turnaround is here. Total KQ debt overnight down to USD 1.2B from USD 2.1B, being USD 775m debt conversion along with KLM cash injection of USD 100m.. Positive working capital.. Operating profit in the black.. What other negatives remain? The rally of a lifetime http://www.businessdaily...72704-rbhllbz/index.html

Totally.. The turnaround is here. Total KQ debt overnight down to USD 1.2B from USD 2.1B, being USD 775m debt conversion along with KLM cash injection of USD 100m.. Positive working capital.. Operating profit in the black.. What other negatives remain? The rally of a lifetime http://www.businessdaily...2704-rbhllbz/index.html[/quote]

A crisis averted.Mr Sebastian, the ball is in your court. Please flex your muscle and pull this Airline out of the mess created by Ngunze and Co.

Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ.

It's not news for you to discover that you're the most crazy lunatic at nse!

Good morning to you too crazy lunatic!

By the way are you aware clowns mint millions of money by entertaining crazy lunatics and company? Disclaimer :at nse I'm not a clown.

You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA[/quote]

The challenge of KQ still is passenger numbers to generate the necessary cash flows. Where will this come from.
As for the bank debt conversion to equity i picked that from the business daily link you posted.
GoK will guarantee them and look at ways of increasing the tenor

Have a good nse day comrade. Your cheers at the den makes it thrive and throb.
and Mark you, having probably dropped the hang on this morning, and working with typical values given by Genghis I.e 6.49, 18.7, 33.7 & 41.1 against the current holding ratios of 43. , 29. , 0 and 28. , can you figure something out of it. I.e level of dilution, eps, market capitalisation, liquidity of the stock, the impact of a five year concession on the bottom lines, impact of lenders being forced to own 33.7% as a marriage of convenience etc. Have you looked at the frs 2016 to see cost of finance at 15b.s. & freight ownership costs at b.s. do you feel that this is a triad company held by Gova, svp banks and klm and your presence there in means nothingness to all these dominant partners with complicated interests? Try better and see the lights before tots starts taking toll on you.
Fire and Forget mode fully activated. (FAF-for you)

@muandiwambeu
KQ will still go back to the same hole since they have said they intend to take more debt

Do not underestimate the power of concessions on tenure to reduce pressure on an entity's cashflow. KQ has been trying to bring in experts in various departments to help actually improve operations. The concessions help to reduce pressure as the changes take effect. Whether the changes will be successful, that is another matter. I would stay out for now as there are quite a number of unknowns e.g conversion price, the fine details of the concessions, parliament. and KQ just like mumias is subject to so many external factors.