MANILA - PAL Holdings said Wednesday "it was not aware" of the company's reported plan to file Chapter 11 creditor protection on June 29 in New York, and that its board has yet to approve a "definite option."
The operator of Philippine Airlines was responding to an Inquirer.net report that the carrier was eyeing to file Chapter 11 bankruptcy on June 29.
"We are not aware of the dates of filing referred to in the above-mentioned article," PAL Holdings said in a disclosure to the stock exchange.
"Consistent with our earlier disclosure, the Board of PAL has not approved any definite option as of this date, therefore, the remedy and dates stated therein are at best mere conjecture of the industry sources they claimed to have based them on," the statement said.
A Chapter 11 filing does not mean that PAL is shutting down, but instead will be allowed to reorganize to keep its business alive and pay creditors over a period of time.
The company has also said its operations would not be affected “in any restructuring.”
The Lucio Tan-led firm earlier said it would undergo restructuring due to the losses aggravated by the COVID-19 pandemic. PAL Holdings reported a net loss of P73 billion in 2020.
Aviation industry website FlightGlobal also reported earlier that the informed its lessors that it was planning to file for Chapter 11 bankruptcy protection in the US by the end of May.