SEC clears Philippine Airlines restructuring

MANILA, Philippines — Flag carrier Philippine Airlines has secured the go-signal of the Securities and Exchange Commission (SEC) to undergo equity restructuring to partially clear its deficit.

In a disclosure to the Philippine Stock Exchange yesterday, PAL Holdings Inc. said its equity restructuring has been granted by the corporate regulator last Aug. 23.

“With the grant of the said application, the company’s additional paid-in capital of P25.339 billion shall be used to partially wipe out the company’s deficit of P29.073 billion,” PAL said.

PAL last year also sought the SEC’s approval to undergo equity restructuring to eliminate its deficit as of 2016.

The company earlier said the move to eliminate the deficit accumulated from losses incurred in the past would allow the carrier to declare dividends and attract investors.

PAL president and chief operating officer Jaime Bautista said last year that the carrier is hopeful it could complete a deal with a strategic investor this year to help the company in terms of contribution in equity, management, route development, or possible membership in an alliance.

PAL reported a total comprehensive loss of P444.78 million in the first half, 59 percent higher than the P279.70 million total comprehensive loss in the same period last year.

Total revenue for the period, meanwhile, hit P75.13 billion, up 13.3 percent from last year’s P66.31 billion due to the increase in passengers and cargoes carried as a result of increase in number of flights operated as well as improvement in yields.