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.

El Al Boeing 777-200ER

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.