Israel's El Al Airlines considers public bond sale in fight for survival

El Al Israel Airlines is considering a bond sale to the public as it fights to stave off collapse after failing to reach a deal on a state-backed loan to help it recover from the COVID-19 pandemic. Israel's flagship airline, which also reported a Q3 loss on Wednesday, had secured government backing for 75% of a $250m loan conditional on the group slashing expenses and issuing $150m worth of new shares. The company held the share sale last month, resulting in the 27-year-old son of a US nursing homes tycoon taking a controlling stake. It also agreed with unions to cut 2,000 jobs and reduce the salaries of the highest paid. But El Al said on Wednesday it had failed to reach an agreement for a loan with a financial entity and so was "considering an alternative of raising the loan by issuing bonds to the public." "At this stage there are significant doubts about the continued existence (of the company) as a going concern," it added. CEO Gonen Usishkin said the airline was cutting costs to try to return to growth. "However, without the support of the government, which will provide El Al with the necessary backing so we can advance the debt raising, El Al will have difficulty meeting its future obligations and will face the danger of collapse," he said.<br/>