The Phoenix will stand forEL AL $ 130 million loan. The parties are in advanced negotiations and have even submitted the terms of the agreement to the Ministry of Finance for approval. EL AL and the consequences of the epidemic on its future operations.
Under the agreement, within a period of about five years you will The Phoenix Also purchase minority shares from the EL AL Frequent Flyer Club, whose activities will stand as collateral for taking the loan.
El Al has long since announced that it will realize part of its frequent flyer club, through which it will raise at least $ 100 million. The deadline for the implementation has been extended so that on March 14, El Al is scheduled to submit a plan to raise the amount to the Treasury.
Realization means bringing a partner club’s income-producing asset to the club, frequent flyer for this purpose is recorded as a separate company, but to preserve the control of the club in her hands. In talks to sell 30% of the club at the time were conducted with Bank Hapoalim.
Weeks to months for the actual loan
El Al’s forthcoming plan is to sign a memorandum of understanding with the Phoenix as early as next week, but this is a complex transaction that requires further due diligence, at the end of which El Al will receive the loan in a reasonable scenario within a few weeks and even months.
Another outline asked about a tester is taking out a loan in exchange for mortgaging another of her property: locks (takeoff and landing windows). The slots owned by EL AL are translated into millions of dollars. More airlines around the world are mortgaging their coveted slots in exchange for loans, as the American airline Jet Blue recently did. The Ministry of Finance requires approving any move that involves locksmithing.
Before the transfer of control of the Company, directed to the height of the epidemic in contact with Phoenix as well as with other institutions and banking entities in order to take a loan of $ 300 million. The Ministry of Finance has not approved the agreements with the banks at the time presented by National Discount claiming high interest rates, while the country was guaranteed at least 75% of the loan amount. Now hope to confirm her treasures to take usury good script remains about 8%, but the real may rise to 12% or more.
Reduced the loss in 2021
El Al recently published its financial statements for 2021, which reflect the reduction of the annual loss to $ 413 million compared to about $ 520 million in 2020. In the top row, El Al presented revenues of $ 857 million compared to revenues of $ 623 million last year. The fourth quarter of 2021 provided God with an optimistic spirit in light of the pace of bookings rising with the lifting of restrictions on global aviation and tourism.
In the past, Phoenix held shares in EL AL and was one of the company’s stakeholders. Today, Phoenix holds approximately 9% of the company’s shares. Global Wings The former controlling owner of El Al.