Nakash brothers to inject NIS 25m into Arkia

Arkia Photo: PR

The airline will also take a NIS 130 million loan to help it survive the Covid-19 pandemic.

Arkia Airlines Ltd. management has announced that the Nakask brothers - Joe, Avi and Rafi - who hold a 70% stake in the airline, will inject NIS 25 million into the company, "even though they have no obligation to do so." Arkia's management also said that the airline is committed to signing for NIS 130 million worth of bank loans from Bank Hapoalim (TASE: POLI) and Israel Discount Bank (TASE: DSCT) in the coming days. The loans will have a 75% state guarantee.

Arkia's fleet has been grounded since March because of the Covid-19 pandemic and all employees put on unpaid leave. The latest move comes after protests by employees demanding that the airline take loans and restart operations.

Sources inform "Globes" that Arkia's board of directors plans to appoint former CEO Gadi Tepper as chairman in the next few days to replace Avi Homero.

Published by Globes, Israel business news - en.globes.co.il - on August 2, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Arkia Photo: PR
Arkia Photo: PR
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