El Al Israel Airlines Ltd. (TASE: ELAL) controlling shareholder Eli Rozenberg landed in Israel this morning on a private Arkia Airlines Ltd. flight from Larnaca, after flying to Cyprus with his entourage.
It is not clear why Rozenberg did not fly to Israel from New York on one of the airline's rescue flights. Back in Israel, Rozenberg is expected to complete the process of taking loans from several financing sources as well as injecting his own capital into the airline.
The way was paved for El Al to complete the financial rescue package, which was begun last September, after Israel's National Labor Court dismissed the appeal by the airline's pilots to cancel the collective agreement signed by the Histadrut (General Federation of Labor in Israel)) on their behalf last year. The agreement includes job cuts and streamlining.
El Al is expected to take a $300 million loan with 82.5% state guarantees. At the same time Rozenberg will inject an additional $75 million into the company as required by the bank and the Ministry of Finance as a condition for the loans and the guarantees. El Al is expected to hold an offering of shares with Rozenberg committed to buying $50 million of the shares. A special process is needed for this because Rozenberg's stake in El Al will rise above 45%.
Rozenberg is required to go into at least 10 days isolation in a state-sponsored hotel, subject to two negative Covid-19 tests.
Kanfei Nesharim, the company through which Rozenberg holds a controlling stake in El Al, declined to comment on this report.
Published by Globes, Israel business news - en.globes.co.il - on February 10, 2021
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