Wednesday, June 12, 2013

■ KENYA: Jetlink Express pitches debt-restructuring deal to creditors as means of returning to operations.

Jetlink ExpressJetlink Express (J0), the bankrupt Kenyan regional operator, has attempted to offer its various creditors shares in a recovery plan, set to be funded by CFC Stanbic Bank.

Jetlink at JKIA
Jetlink at JKIA in better times
The recovery plan was presented to a court in Nairobi as a means of staving off  the airline's various creditors that include jet fuel suppliers Finejet, Aerotech Limited, KenolKobil and  Avmax Spares East Africa. Jetlink owes USD250'000 (KES21million) locally and USD5.5million and EUR600'000 separately (KES535.01million) in foreign debts.

Under Jetlink's proposal, a 51% tranche would be shared between the equity investor, the creditors and a debt-management agency. In return, USD4.23million of Jetlink's debt would be expunged with the rest (USD2.25million) converted into shares, which it would buy back after five years.
If the debt restructuring proposal is concluded and the capital injection of funds for working capital by the financiers is availed, the company will resume its operations,” Jetlink managing director Elkana Aluvale says in an affidavit.
Source [The Nation]

No mention of any possible tie-up with fastjet has been made leading to speculation the deal has fallen through

CFC Bank will provide undisclosed working capital that is not meant to be paid to the creditors.

Jetlink ceased operations last year after foreign currency remittance restrictions in South Sudan effectively cut off the Kenyan carrier from USD2million needed to keep operations running.