By Steven Scheer
JERUSALEM (Reuters) – The chairman of El Al Israel Airways (TA:), Eli Defes, is stepping down instantly due to an undisclosed medical situation, he stated on Sunday.
Defes joined El Al’s board in 2015 and have become chairman in 2017.
It was not instantly clear who would change Defes, however it will in all probability be one in all two vice chairpeople: Yehuda Levy or Tamar Mozes-Borovitz.
Israel’s flag provider is combating for survival after the COVID-19 pandemic added to its difficulties, forcing it to droop flights and furlough most of its workers. It has reported losses for the final two years and racked up debt to resume its fleet.
Final month Eli Rozenberg, a U.S. citizen resident in Israel, provided to funnel $75 million into the airline in return for a 45% stake.
On the similar time, El Al is in superior negotiations for a authorities bailout to keep away from chapter following the pandemic.
The federal government provided to again $250 million in financial institution loans in alternate for El Al issuing $150 million in shares, which the state will purchase if no-one else does in a public providing.
El Al’s board has but to vote on Rozenberg’s supply, which might additionally want shareholders’ approval.
“I’ve full confidence within the firm’s administration and board members who will know the right way to lead El Al to past this disaster to a extra secure and safe future,” Defes wrote in his resignation letter, a replica of which was seen by Reuters.
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