El Al Israel Airlines Ltd. (TASE: ELAL) controlling shareholder Eli Rozenberg is to inject an additional $50 million into the ailing airline. The money, which will be transferred in the coming few days, was part of an agreement with the Ministry of Finance, which saw Rozenberg buy a controlling 42.9% stake for $105 million in El Al's public offering on the Tel Aviv Stock Exchange (TASE) in September. The $50 million injection is in addition to an owners interest free $10 million loan that Rozenberg's holding company Kanfei Nesharim Aviation announced.
The $50 million will be injected as part of the debt that El Al is currently trying to raise with government guarantees.
As reported earlier this week by "Globes," the Ministry of Finance has agreed to raise the amount of loans it is prepared to guarantee from $250 million and $300 million and the percentage of the guarantees from 75% to 82.50%.
Kanfei Nesharim said, "Businessman Eli Rozenberg will continue to be committed to the financial stability of El Al and will put at its disposal the necessary resources and tools to strengthen the company."
El Al chairman David Brodet said, "We have earned full cooperation and high trust from the Ministry of Finance in order to lead El Al to take off anew and so that the future of the company will be assured. The commitment of Eli Rozenberg and the injection of additional capital with the state guarantees will ensure that El Al will meet its commitments."
Published by Globes, Israel business news - en.globes.co.il - on December 9, 2020
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