KQ hires firm to streamline its books

The national carrier Wednesday named New York based PJT Partners as its transaction advisor to oversee its balance sheet restructure.

Tuesday February 16 2016

Kenya Airways Chief Executive Officer Mbuvi Ngunze (right) at a past appearance with former Finance Director Alex Mbugua. The fresh row between pilots and Kenya Airways is threatening to derail the embattled airline’s quest to return to profitability. PHOTO | DIANA NGILA |

Kenya Airways Chief Executive Officer Mbuvi Ngunze (right) at a past appearance with former Finance Director Alex Mbugua. PHOTO | DIANA NGILA |  NATION MEDIA GROUP

By EDWIN OKOTH
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Kenya Airways has hired a transaction advisor a week after the airline appointed Delloite consulting to advise its take off from the loss runway.

The national carrier Wednesday named New York based PJT Partners as its transaction advisor to oversee its balance sheet restructure and long term capital refinancing in its turnaround.

The airline’s Chief Executive Mbuvi Ngunze said the international firm would benefit the airline with its expertise and experience on airline advisories.

“We are at a stage where our Turnaround Strategy is beginning to gain traction. Over the next six to nine months, we will work with PJT Partners and they will be instrumental in assisting the airline secure its future beyond the turnaround. The Board is confident that they are the right choice,” Mr Ngunze said.

STRATEGIC ADVISORY

PJT Partners will be expected to provide strategic airline advisory to Kenya Airway as it seeks to restructure its balance sheet as well as change from its heavily undercapitalised position.

The firm’s head Martin Gudgeon expressed optimism on their new role at KQ who posted heavy losses amidst its botched fleet expansion and fuel hedging plans.

“We look forward to helping Kenya Airways reshape and recapitalize its balance sheet to ensure the company’s full potential is realized.”

Last week, the airline’s board appointed Deloitte Consulting to comb its operations and advise the loss making carrier on how to improve its systems, processes and activities.

KQ’s strategic lapses like the huge fleet expansion plan dubbed project mawingu, management tussles with employees and commercial operations are likely to be focused on during the three months audit set to look back six years of the airline’s running.

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