Ministry of Finance: El Al will get an infusion of $ 150 million through convertible bonds

The Ministry of Finance has completed the formulation of the non-super-aid scheme, which includes, not to be surprised, an infusion of $ 150 million through convertible bonds that do not pay interest and are not linked. Previous streaming.
The terms of the bonds issued to the state will not pay interest, but will be for two years, at the end of which El-Al will choose whether to return the money to the state or go public as the state will convert the bonds into shares that will be reduced to 24% of the company's capital.
The state clarifies to El-Al that all its inflow to the company will be conditional on the inflow of shareholders' money, ie Kenny Rosenberg and this will be in view of his previous commitment to inject $ 43 million into the company's coffers.
In addition, El-Al will be able to apply to the Aviation Industry Assistance Fund and receive a state-guaranteed loan to complete its cash needs.
Recall that it is not clear what the value of Kenny Rosenberg's commitment is in light of the fact that his previous commitment to inject $ 43 million against $ 200 million assistance from the state was not honored and the state did nothing to collect that debt. It is clear that the state is not interested in bringing El-Al to collapse and is not interested in nationalizing it, but a situation has arisen that is a bit strange and is in fact the condition of the controlling shareholder to comply with a previous agreement with additional assistance.
It will also be recalled that the state did not provide the assistance in El-Al's further streamlining, a situation that is in itself problematic in light of the fact that the company suffers from illogical wage agreements neither during routine nor during a crisis. The manpower situation and did not reach the final number of aircraft fleet and suitable manpower situation to operate it, a situation that was until recently a basic condition of the state before the flow of additional assistance.