To receive government bailout, El Al has to put up stocks for sale
The company needs to raise at least NIS 505 million in shares. In return, it would get the yearned for state guaranteed loan - worth millions.
By DANIEL NISINMANEl Al plane(photo credit: ERIC GAILLARD/REUTERS)
Following the dire financial condition of Israel's national flag carrier, El Al, caused by the coronavirus, the Finance Ministry made it firmly clear that in order to get the much-needed aid for the company, they will have to put a large portion of its shares for sale, according to Bloomberg news on Sunday.The company needs to raise at least NIS 505 million in shares. In return, it would get the yearned for state guaranteed loan - worth millions.The government committed to purchasing some NIS 265 million of El Al's stocks, which in turn will be sold within two years.El Al has until September 10 to put it shares on sale.The company's management is currently studying the proposal, but no decision has been made yet.Interestingly enough, the original deadline set by the ministry was August 30. However, after not having reached a decision, Transportation Minister Miri Regev intervened, telling the company that it must issue a share offering within the coming days.
