Regev tells El Al: Offering, sale or receivership now

Miri Regev  / Photo: Michal Raz-Chaimovitz, Globes

Transport Minister Miri Regev has reportedly run out of patience with the financially stricken airline.

After the August 31 deadline for the government's planned $150 million public offering for financially stricken El Al Israel Airlines Ltd. (TASE: ELAL) has come and gone, and offers to buy or invest in the airline remain on the table, Minister of Transport Miri Regev has given the company an ultimatum: if you don't announce the date of the public offering for the coming days, you must immediately move forward in selling the company or go into receivership.

Over the past 24 hours, Regev has held discussions with the parties involved and let El Al and the Ministry of Finance know that the matter must be resolved immediately.

Sources summed up the message coming from Regev and her advisors as follows, "El Al is playing for time. They got the Ministry of Transport to help them as part of the government's commitment so that El Al would not collapse. But this commitment is not an insurance policy. The company was helped by Regev with the workers committee and received its backing but she is fed up. She has now told El Al that if within 48 hours it has not announced the date of the offering which must take place within a few days, she demand that they give up the keys and let the buyers who are interested in the company acquire it, or hand it over to receivers. Things cannot continue this way."

In addition to the $150 million offering, the State has pledged to provide 75% guarantees for bank loans worth $250 million, although as far as is known no loans have yet been agreed with banks.

Published by Globes, Israel business news - en.globes.co.il - on September 1, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Miri Regev  / Photo: Michal Raz-Chaimovitz, Globes
Miri Regev / Photo: Michal Raz-Chaimovitz, Globes
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