El Al still discussing loan with carrier's survival at stake

El Al has warned that the survival of the airline is uncertain as it seeks to secure urgent funding to cope with the coronavirus crisis. In its belated full-year financial statement, El Al says a loan is “essential” and that the are “significant doubts” about the continued existence of the company as a going concern. El Al’s auditor has similarly drawn attention to the uncertainty over the airline’s financial position. Deloitte states that the collapse of demand and disruption caused by the coronavirus outbreak has prompted El Al to adjust its cash outflow and negotiate with lenders over a loan of around $400m. “Negotiations with the state and lender are continuing and uncertainty exists regarding completion,” it adds in a ‘going concern’ note. The airline points out that among the problems it is facing is a decline in aircraft values, which are normally used to secure loans for the company’s activity. El Al is pushing back the release of its Q1 results, aiming to publish them by 30 June.<br/>