Israeli flag-carrier El Al’s primary shareholder is seeking to conduct a debt-for-equity swap involving a loan to the airline.

Kanfei Nesharim holds 39% of the El Al share capital – and 54% on a fully-diluted basis – according to the company’s third-quarter financial statement.

El Al says its board of directors has “received an offer” from Kanfei Nesharim which includes partial conversion to equity of loans amounting to $70 million.

It states that an independent board committee has been established to examine the proposal.

“No agreements have been reached between the parties,” it adds.

Another 41% of El Al is floated, while the Israeli government has 13% and Knafaim Holdings holds the 7% balance.

El Al 787-c-El Al

Source: El Al