Treasury refuses to release compensation fund to El Al

El Al

The Ministry of Finance will only let the financially troubled airline have $10 million of the NIS 230 million compensation fund.

El Al Israel Airlines Ltd. (TASE: ELAL) management has officially asked Minister of Finance Israel Katz and Minister of Transport Miri Regev the NIS 230 million surplus in the company's compensation fund to avert the existential threat to the airline. The court has already approved release of the money.

El Al stresses that the funds is surplus money and all employees are guaranteed rights that have accrued for them. However, the Ministry of Finance must approve the measure as the funds are considered public money. The Ministry of Finance failed in a bid to obtain the money for itself in 2014.

The Ministry of Finance, nevertheless, has only agreed to release $10 million from the compensation fund and will also pay it $5 million prepayment on security services for August.

Published by Globes, Israel business news - en.globes.co.il - on July 22, 2020

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

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