The board of directors of El Al today (Monday) approved the nationalization and acquisition of the company by the state - which will continue to operate it.
According to the agreement, the company will receive a $250 million state-guaranteed loan and another $150 million through a share issue.
If the public does not purchase the shares, the move will lead to the expropriation of El Al from its owners - the company Knafaim Holdings, controlled by the Borovitz family.
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The outline gives the state a potential ownership of 61% of the company's shares, which will return to the state 15 years after it was privatized and sold to the Knafaim company.
The Ministry of Finance explains that the state has no desire or interest in controlling the company, and if that were the case, a trustee on behalf of the state would manage it and work to sell it quickly to an external investor - who must have Israeli citizenship.
In recent months, El Al has suffered heavy losses, after being forced to halt its operations since the beginning of the Corona crisis and the closure of the skies.
Just in recent days, the company announced that it would lay off 500 employees, in addition to the thousands of employees it has already laid off.
