El Al delays appointing Rozenberg's board

El Al and Eli Rozenberg / Photo: Yoav Yaari
El Al and Eli Rozenberg / Photo: Yoav Yaari

The airline has called a shareholder's meeting for November 17 but Rozenberg's advisors may ask the courts to bring the date forward.

The transfer of control of El Al Israel Airlines Ltd. (TASE: ELAL) to Eli Rozenberg, whose company Kanfei Nesharim bought a 43% stake in the airline last month, will have to wait. He has already named a new chairman and directors but El Al today announced that the next shareholders meeting will not be until November 17, with an option to postpone until November 24 (if a legal quorum cannot be found). So meanwhile Rozenberg will have to put his plans on hold.

The agenda for the meeting includes discussing the 2019 annual report, reappointing Brightman Almagor Zohar as the company's auditors, and appointing the chairman and directors proposed by Kanfei Nesharim: David Brodet as chairman and Prof. Gabriela Shalev, Moti Engelman, Dror Cohen, Amikam Ben Zvi and Jason Greenblatt as directors. Each candidate will be voted on separately.

Rozenberg's entourage has already raised the option that any delay in the changeover of chairman and the board could result in a court petition to speed up the process. Without his board of directors in place Rozenberg will not be able to make other managerial appointments and implement other plans as the airline strives to recover from the halt in flights over recent months.

El Al restarted flights at the beginning of the month to Greece and even operated a scheduled flight to New York this week but the restrictions imposed by the government in the lockdown on September 25 forced it to cancel many of the flights.

Meanwhile El Al's pilots have appealed to the labor court to cancel the new collective agreement signed by El Al's management and the Histadrut (General Federation of Labor in Israel) without its consent.

Published by Globes, Israel business news - en.globes.co.il - on October 13, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

El Al and Eli Rozenberg / Photo: Yoav Yaari
El Al and Eli Rozenberg / Photo: Yoav Yaari
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018