The Treasury approves terms of granting $ 210 million to El Al


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Details of the state’s rescue plan have been approved by the Israeli Ministry of Finance to Al Al Israel Airlines Ltd. (TASE: ELAL). The Treasury will transfer $ 210 million in advance to the financially troubled airline for airline security services in the coming years. In addition, El Al has committed to raising another $ 105 million through a public offering with controlling shareholder Eli Rozenberg who has committed to purchasing at least $ 43 million in shares. El Al has also agreed to implement its simplified plan, which will result in $ 400 million in savings in the coming years. Related articles El Al begins laying off 2000 employees El Al provides results of 15-minute covid tests Kenny Rosenberg immigrates to Israel The Ministry of Finance agreed to give LL the money it needs to survive after negotiations with Bank Leumi (TASE: LUMI) and a discount The Israel Bank (TASE: DSCT) that it made for a $ 300 million loan with an 82.5% government guarantee did not pay off. The Finance Ministry did not agree to the interest rate terms that the banks insisted on charging El Al. El Al needs money to pay suppliers and refund customers, many of whom have not received the money paid for canceled flights over the past year due to the Covid crisis. El Al has already made two public offers over the past six months with controlling shareholder Eli Rozenberg who invested $ 110 million in the first and $ 50 million in the second. With a commitment of $ 40 million in the next show, Rosenberg had invested more than $ 200 million in the airline. As part of its simplistic plan, El Al is laying off 2,000 employees, nearly a third of its total workforce. In this way, El Al hopes to become a more lean and efficient company, which will help it recover from the devastating blow of the Covid-19 pandemic, which has halted international travel, to and from Israel, most of the time. last year. Posted by Globes, Israel business news – en.globes.co.il – on March 17, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021


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