MANILA - PAL Holdings Inc on Friday said a Pasay City court granted Philippine Airlines' petition for recognition of its Chapter 11 filing in the US.

"We confirm that a Pasay City Court had granted Philippine Airline, Inc.’s (PAL) petition for recognition of the proceedings and decisions of a United States bankruptcy court currently hearing its Chapter 11 case," PAL Holdings said in a disclosure to the stock exchange.

A Chapter 11 bankruptcy filing does not mean the flag carrier is shutting down but instead it will be allowed to keep operating and pay creditors over a period of time.

Since the filing, PAL has secured approval from a US court to access $505 million in debtor-in-possession financing, the airline operator earlier said.

The airline earlier assured the public that the ongoing proceedings and restructuring won't affect operations and that it would remain "business as usual."

PAL also said there has been "no objection" recorded from the creditors in both the US Chapter 11 and Pasay Court filing.

• PAL secures US court nod to access $505 million financing
• PAL secures US Bankruptcy Court approval for access to $20 million funding

Tycoon Lucio Tan's Buona Sorte Holdings Inc (BSHI) will infuse $255 million (P12.75 billion) in fresh capital into PAL as part of its restructuring program, PAL Holdings earlier said.

The aviation industry is among the hardest hit sectors by the COVID-19 pandemic due to global mobility restrictions imposed to limit the spread of disease.

• Lucio Tan throwing $505 million lifeline to PAL as part of airline's reorganization
• PAL asks Pasay Court to recognize US Chapter 11 bankruptcy protection filing

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