MANILA, Philippines — Philippine Airlines Inc. (PAL) has finalized its executive team that will lead the flag carrier in its expected emergence from the Chapter 11 bankruptcy process.
During the company’s annual stockholders’ meeting last week, elected as directors of PAL to become members of the executive team for the coming year are tycoon Lucio Tan and wife Carmen, daughter Rowena Chua, and grandson Lucio Tan III, alongside Gilbert Gabriel Santa Maria, Florentino Herrera III, Mark Chen, and Junichiro Miyagawa.
Named as independent directors, meanwhile, are Leonardo Alejandrino, Johnip Cua, Juan de Zuniga Jr., and Samuel Uy.
Santa Maria remains as PAL’s president and chief operating officer, while Juanita Tan Lee was elected as treasurer and Marivic Moya as corporate secretary.
Tan, PAL’s chairman and CEO, will chair the company’s executive and nomination committees, while Cua and De Zuniga will chair the audit and risk management committee and corporate governance committee, respectively.
PAL on Sept. 3 voluntarily filed for a pre-arranged restructuring under the US Chapter 11 process in the Southern District of New York.
The restructuring plan includes infusion of $505 million in long-term equity and debt financing from PAL’s majority shareholder, alongside $150 million of additional debt financing from new investors.
Last month, the company’s recovery bid further gained ground as it received US court approval on a final basis to access the $505-million debtor-in-possession financing, which the airline said is “a core feature” of its restructuring plan.
Tan’s Buona Sorte Holdings Inc. will extend a $250 million loan to PAL on top of the $275 in fresh capital it is injecting to the flag carrier’s parent firm PAL Holdings Inc.
A Pasay City court has also recently granted the petition of the company seeking recognition of the Chapter 11 process in the US.
PAL targets to exit from the Chapter 11 process before the year ends, from which the company is expected to emerge with fresh capital and lower debt.