JERUSALEM: Cash-strapped El Al Israel Airlines filed to hold a government-mandated 505 million shekel ($148 million) share offering on Wednesday that will enable it to receive a state bailout package.

El Al, Israel's flag carrier, has been hit hard by the coronavirus outbreak and the government has for months offered to intervene to help it avoid bankruptcy. It has reported losses for two years running, racked up debt to renew its fleet and suspended flights when Israel closed its borders and furloughed most of its employees.

In a prospectus filed with the Tel Aviv Stock Exchange on Tuesday, El Al said it will issue 753.35 million new shares, with Israel's government intending to buy 393.75 million. This will put the airline under government control until a buyer for its stake is found.

After the offering, El Al -- controlled by Knafaim Holdings -- will receive a $250 million bank loan that will be 75% backed by the state.

Israel's government last week told El Al they had one week to hold a share offering if they wanted a bailout after the airline's board has been slow in making a decision.