PAL taps international law firm for restructuring

MANILA, Philippines — Flag carrier Philippine Airlines (PAL) has appointed the prestigious international law firm Norton Rose Fulbright as airline counsel for its restructuring, according to travel data and analytics company Cirium.

In its latest analysis, Cirium said the law firm last week sent documentation to aircraft lessors regarding amendments to leases, as well as PAL’s restructuring process.

PAL, it said, is eyeing to reduce its leased fleet and seek more favorable lease terms on the aircraft it intends to keep.

Cirium said a total of 19 lessors are exposed to PAL and subsidiary PAL Express, which accounts to 48 aircraft or half of the airline’s current fleet.

PAL intends to seek court protection from creditors as it undertakes debt restructuring as part of ongoing efforts to ensure the airline’s survival, with a Chapter 11 filing in the US among the considerations.

Cirium said PAL may also seek a pre-packaged insolvency in which it would agree to a restructuring plan with its creditors in advance of filing.

“Philippine Airlines management and stakeholders remain committed to find the necessary solutions that will enable the company to emerge financially stronger and secure,” PAL spokesperson Cielo Villaluna said.

“We will issue disclosures at the proper time,” she said.