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PAL emerges from Chapter 11 Bankruptcy proceedings
PAL emerges from Chapter 11 Bankruptcy proceedings
ABS-CBN News
Published Jan 03, 2022 11:14 AM PHT
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Updated Jan 03, 2022 11:39 AM PHT
A Philippine Airlines plane is seen at the background as a man uses his phone at the arrival area of the Ninoy Aquino International Airport (NAIA) Terminal 1 in Pasay City on May 24, 2021. Jonathan Cellona, ABS-CBN News/File
MANILA - PAL Holdings Inc said Monday Philippine Airlines has completed its voluntary Chapter 11 proceedings with a "strengthened" balance sheet as it reaffirms its commitment to operate as a full service airline.
The flag carrier was able to complete its financial restructuring in 4 months, its parent PAL Holdings said in a disclosure to the stock exchange.
PAL's plan for reorganization, which was approved by the US restructuring court on Dec. 17, provides for over $2 billion in permanent balance sheet reductions from existing creditors, improvements in PAL operational agreements and additional liquidity including $505 million investment in long-term equity and debt financing from majority shareholder, PAL Holdings said.
PAL said the completion was due to the support of its creditors, shareholders, partners and employees around the world who sustained flights throughout the restructuring period.
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"Philippine Airlines stands ready to help grow back the Philippines' local and international air travel markets in ways that renew the tourism industry, serve the needs of global citizens including overseas Filipinos and contribute actively to the recovery of the Philippine economy," PAL director Lucio Tan III said, quoting PAL Chairman and CEO Dr. Lucio Tan.
"Our mission as the flag carrier matters more than ever, and we are thankful for the chance to rebound from the pandemic and continue to fulfill this mission as best as we can."
PAL said it would reinvest in its operations to better serve its customers.
The flag carrier filed for Chapter 11 bankruptcy after the COVID-19 pandemic aggravated financial woes. Its operator posted a net loss of P73 billion in 2020.
The aviation industry has lost some $51.8 billion in 2021, according to the latest data from the International Air Transport Association (IATA).
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