Banks link El Al loan to $75m injection from Rozenberg
The situation in the aviation sector has only worsened, making it even more difficult for El Al to obtain the loan.
The banks are demanding that El Al Israel Airlines Ltd. (TASE: ELAL) controlling shareholder Eli Rozenberg inject an additional $75 million into the airline. Rozenberg bought a controlling 42.88% stake in El Al for $150 million in a public offering on the Tel Aviv Stock Exchange (TASE) in September.
As part of the Ministry of Finance s financial rescue plan, Rozenberg is meant to take bank loans or offer bonds to institutional investors with government guarantees. The initial plan called for $250 million with 75% government guarantees but the Ministry of Finance has agreed to raise this to $300 million with 82.5% guarantees.
Photo Credit: Yonatan Sindel / Flash 90
Israeli Prime Minister Benjamin Netanyahu speaks during the official opening ceremony of the new Ramon International Airport, named in memory of Ilan and Asaf Ramon, near the southern Israeli city of Eilat, on Jan. 21, 2019.
Sun DâOr International Airlines â a subsidiary of Israelâs national carrier, El Al Airlines â is set to stop flying its routes on Friday nights and Saturdays, according to a report by the
Globes business news site.
The airline, which provides charter flights for travel wholesalers, will no longer offer train packages that include flights on Saturdays or holidays,
Globes reported.
Israel
By Hamodia Staff
YERUSHALAYIM -
A Sun D’Or Boeing 737-800 operated by El Al Airlines. (LLHZ2805)
El Al-owned Sun D’Or International Airlines will no longer operate flights on Shabbos, Globes reported Sunday.
While El Al itself does not fly on Shabbos, Sun D’Or, a unit of the national carrier, has been operating charter flights on Shabbos. The decision is effective immediately, and tourist agencies have been notified that packages which include Friday night/Saturday flights, will have to be discontinued.
In September, control of El Al was acquired by Eli Rozenberg, an Orthodox Jew.
The acquisition of Israir by BGI Investments could well result in a similar policy change, as one of the owners, Rami Levy, does not operate his businesses on Shabbos.
Wholesale tourist agencies trying to book packages, which include Friday night/Saturday flights, have been told that the change of policy has come into effect.
The proposal to purchase Israir still requires court approval.
Levy is the owner of the eponymous supermarket chain and Haim is the controlling shareholder of Taaman Food Marketing.
Rami Levy in one of his Jerusalem supermarkets on June 23, 2016. (Miriam Alster/Flash90)
The winning offer beat out competing proposals from businessmen Yigal Dimri and Moti Ben-Moshe. An Israeli businessman based in the United Arab Emirates also offered to buy the firm.
Along with the sale of Israir, national carrier El Al Israel Airlines was recently put on the auction block. In October, the Government Companies Authority officially granted 27-year-old Israeli-American Eli Rozenberg control over El Al. Rozenberg’s newly minted Kanfei Nesharim Aviation purchased 42.88 percent of the carrier in a September 16 sale, making it the controlling shareholder as defined by Israeli regulation.