The latest financial statements for Israir (6H, Tel Aviv Ben Gurion) owner IDB Development, covering the full year 2019 and released on March 31, include a going concern warning, the Israeli financial newspaper Globes has reported.

IDB's financial position, its cash flow, and its ability to service its debts are the reasons behind the warning, the auditors of the annual report write, in particular pointing to a shareholder deficit of ILS335 million shekels (USD92 million) and net asset value (NAV) of minus ILS1.2 billion (USD328 million).

IDB Development posted a loss of ILS424 million (USD116 million) for the year, which followed losses of ILS465 million (USD127 million) for 2018 and ILS626 million (USD171 million) for 2017.

Eduardo Elsztain, the Jewish Argentine businessman who bought IDB Development in 2014, has injected around ILS3 billion (USD820 million) into the group to date, according to Globes.

But according to the new financial statements' projected cash flow, the group needs cash amounting to ILS212 million (USD58 million) to meet its liabilities in 2020 and a further ILS171 million (USD47 million) to meet them in 2021.

Possible solutions, the statements' auditors suggest, are to sell subsidiary IDB Tourism, which is the direct parent of Israir, or to sell several other shareholdings in real estate, energy exploration or insurance companies. However, the sharp decline in the market makes such solutions difficult at this time.