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Comprehensive restructuring an option for PAL
“PAL is considering all options available to it, including a comprehensive restructuring plan that will ensure its viability and support the chairman’s commitment to continue its operations,” PAL said in a statement.
The STAR/KJ Rosales/File

Comprehensive restructuring an option for PAL

Richmond Mercurio (The Philippine Star) - May 13, 2021 - 12:00am

MANILA, Philippines — Flag carrier Philippine Airlines (PAL) continues to explore all available options to ensure its survival, but assures unhampered operations amid a planned comprehensive restructuring.

“PAL is considering all options available to it, including a comprehensive restructuring plan that will ensure its viability and support the chairman’s commitment to continue its operations,” PAL said in a statement.

“As of the moment, there is no definite option that has been officially approved,” it said.

PAL said its management and stakeholders continue to work on a comprehensive restructuring plan that would enable the airline to emerge financially stronger from the current global crisis.

“As the work is ongoing, we will make the necessary disclosures at the proper time once details are finalized,” it said.

PAL has reportedly been planning 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.

Travel data and analytics company Cirium earlier reported that the flag carrier may file for Chapter 11 bankruptcy protection in the US by the end of the month.

Norton Rose Fulbright is the airline’s counsel on the restructuring, while Seabury Capital has been appointed as restructuring adviser, according to Cirium.

PAL, however, said its flights and operations would not be affected in any restructuring.

“We continue to increase our international and domestic flights as the market recovers with easing of travel restrictions,” the airline said.

PAL posted a total comprehensive loss of P29.03 billion in the nine months ending September last year, over three times more than the P7.86 billion recorded in the same period in 2019.

PHILIPPINE AIRLINES
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