Israeli flag-carrier El Al has reached a new agreement with the government under which it will advance repayment of $45 million in support loans granted by the state.
The repayment, brought forward by two years, will be carried out by 20 December.
El Al says the new pact means most of the obligations imposed on the carrier, as a result of its receiving the aid, will be “adjusted or cancelled”.
It points out that the company’s financial results are improving and that it is seeking to create “managerial flexibility” and establish growth.
Under the new agreement a deadline for the carrier to undertake a $62 million share issue will be pushed back to the beginning of April 2023.
The Israeli government will advance $20 million for aviation security expenses to the carrier in December, to be reimbursed by April next year unless the ministry of finance approves an extension.
Restrictions preventing El Al from distributing a dividend until the end of 2025 will remain in place, as will a limitation of distributing no more than 30% of net profit for the three years 2026-28.
El Al adds that its commitment prohibiting sale, transfer or encumbrance of airport slots without prior approval of the government will stay in effect until the end of 2030.
