MIAMI – Israeli flag carrier El Al (LY) is starting the process of selling 45% of the stocks to the Rozenberg family, albeit with some setbacks.
The official bid to buy the LY’s stocks comes from Eli Rozenberg, a 20-year-old student, backed by his father Kenny Rozenberg, owner of Centers Health Care in the US. The operation will cost roughly US$100m equivalent to 45% of LY property going to the Rozenberg Family.
However, the sale seems to now seems to have reached an impass due to a legal issue in the US related to the health center.
According to Buffalo Business First, the Center Plan for Healthy Living (CPHL), Rozenberg’s Health Center, agreed to pay US$1.65m to US authorities after it was allegedly filed false claims to defraud the state.
National State Aid to Avoid Bankruptcy
El Al, due to the Coronavirus pandemic, has been heavily affected. To avoid a catastrophic bankruptcy applied for national bank loans worth it US$250m.
Initially, the government offered to back the bank loans in return for EY issuing the US$150m in shares that would be bought by the state if no one else does in a public auction.
El Al Boeing 777 Taking Off from Rome Fiumicino Intl Airport (FCO). Photo: Andrea Ongaro @alphaoscaraviation.