Kenny Rosenberg (LinkedIn / Kenny Rosenberg Photography, Magma Images)
Following negotiations between El Al and Bank Hapoalim for the sale of its customer club, the airline turned to a $ 120 million loan against a lien on sloths. , Which is probably impossible in the current market conditions.
In principle, EL AL sought to raise the $ 100 million through the sale of a share (approximately 20%) of the frequent flyer dates to Bank Hapoalim, but the parties did not reach an equal valley and therefore, as of this moment, negotiations between the parties ceased. El Al received a loan (instead of selling a property that would not burden its financing expenses) but its ability to raise loans lies on the couch so next week we will see the company violate the bailout terms it has agreed with the state.
More in-
El Al is interested in using the precedent set in 2015 when Virgin worked as a slot machine for London airports. And here we will try to explain a little bit of the trap asked about – the Treasury – the shareholders, are in it.
In a reformed world, El Al had to undergo a revolution on the scale of the Broadcasting Authority, simply close and re-establish, but here there is political, business pressure and above all the fear of a situation where Israel will be without an airline on the scale of EL AL, with its capabilities (and capabilities). One of the best operations in the world) for several months and this, the main reason why a powerful finance minister (like Lieberman) agrees to aid on the order of $ 400 million in one year.
This is why no bank is willing to pledge strategic assets of EL AL (like slots) when it is clear to everyone that if the moment of truth comes, and the lien has to be activated, the asset confiscated and realized – it will be impossible with EL AL which leads us to the obvious conclusion: EL AL It will not be able to raise the money ($ 100 to $ 120 million) until next week when it is not certain (though more likely) that it will be able to issue shares and raise capital of a similar magnitude this coming September.
If so, the conclusion we are led to is that next week (and may already be today) El Al will return to negotiating with the Treasury for a postponement of compliance with the agreements and again in fact will extend its hand to the state only to return to it next time.
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