El Al is taking another step to extricate itself from the deep pit in which it finds itself. El Al's board of directors recently approved the planned $ 150 million share issue. According to the outline approved by the board, the offering will take place within a month - until August 30. The short schedule will require the submission of a draft prospectus by the company by next Friday, August 7th.
The Board of Directors' commitment to the IPO paves the way for EL AL to receive a $ 60 million assistance package from the Treasury. Of this amount, the first tranche of $ 10 million will be received as early as Sunday. An additional $ 15 million ration will be received next Friday after a first draft prospectus is submitted.
An additional $ 10 million will later be received after the submission of a second draft prospectus and $ 22 million will be received after the issuance of a final permit for issuance and publication of a deadline, which is due on August 23.
Since Treasury Secretary Keren Turner conditioned the vital assistance to El Al on the progress of the IPO, the board of directors was obligated to approve its implementation.
Along with the approval to provide interim assistance to El Al provided by the Ministry of Finance, after the intervention of Transport Minister Miri Regev and Finance Minister Israel Katz, Regev initiated an amendment to the law that will allow airlines, including El Al, to receive additional extensions to passengers whose flights are canceled.
On Sunday, a government bill will be submitted, which will be discussed by the Economics Committee this week in an expedited procedure, with the intention of postponing the payment by the airlines to October instead of the original date for the refund, which was supposed to take effect on August 14.
Without the offer, El Al would have been required to repay billions of shekels to passengers in two weeks' time - even if in practice some consumers would eventually choose an alternative voucher for a future flight instead of monetary compensation. El Al's coffers are depleted, and a demand for compensation on such a scale would have led the company to insolvency immediately.