Philippine Airlines, Inc. (PAL) announced that the U.S. Bankruptcy Court of the Southern District of New York has approved its Plan of Reorganization (the \u201cPlan\u201d). PAL filed a voluntary petition on September 3, 2021 for a prearranged restructuring under the U.S. Chapter 11 process, and has received overwhelming creditor support throughout the process.<\/p>\n\n\n\n
\u201cToday\u2019s court approval represents a critical moment in our journey to emerge as a stronger airline. We are thankful for our loyal customers, dedicated employees, and the support of our shareholders and partners and government, which has enabled us to move efficiently through the process and reach this milestone,\u201d said Gilbert F. Santa Maria, PAL President & Chief Operating Officer. \u201cWe have a few more procedural steps to take before we can complete the Chapter 11 process, after which we will focus intensely on serving the public, navigating the continuing challenges of the pandemic and economic recovery, and sustaining the links that connect our archipelago.\u201d<\/p>\n\n\n\n
The consensual Plan was accepted by 100% of the votes cast, which were from PAL\u2019s primary aircraft lessors and lenders, original equipment manufacturers and maintenance, repair, and overhaul service providers, and certain funded debt lenders. The Plan provides for over US$2.0 billion in permanent balance sheet reductions from existing creditors, allows PAL to consensually contract fleet capacity by 25%, improves PAL\u2019s critical operational agreements and includes US$505 million investment in long-term equity and debt financing from PAL\u2019s majority shareholder.<\/p>\n\n\n\n
The effective date of the Plan is expected to occur before the end of 2021.<\/p>\n\n\n\n
PAL continues to operate flights to 32 international and 29 domestic destinations from its hubs in Manila, Cebu and Davao. The Philippine flag carrier expects to restore more routes and increase flight frequencies as travel restrictions ease and borders reopen. Following implementation of the Plan, PAL will be better positioned to capture travel demand and serve the needs of global citizens, actively contributing to the Philippine economy.<\/p>\n\n\n\n
Filing Entities<\/p>\n\n\n\n
Philippine Airlines Inc. is the only party included in the Chapter 11 filing; while PAL Holdings Inc., which is listed on the Philippine Stock Exchange (PSE: PHI), and Air Philippines Corporation, known as PAL Express, are not included in the Chapter 11 filing.<\/p>\n","protected":false},"excerpt":{"rendered":"
Philippine Airlines, Inc. (PAL) announced that the U.S. Bankruptcy Court of the Southern District of New York has approved its Plan of Reorganization (the \u201cPlan\u201d). PAL filed a voluntary petition on September 3, 2021 for a prearranged restructuring under the U.S. Chapter 11 process, and has received overwhelming creditor support throughout the process. \u201cToday\u2019s court […]<\/p>\n","protected":false},"author":1,"featured_media":2321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"PAL Wins Court Approval of Recovery Plan #PAL #PhilippineAirlines #airlinenews #aviationnews","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[2,28],"tags":[121,324],"class_list":["post-5954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airlines","category-asia-pacific","tag-aviation","tag-pal"],"yoast_head":"\n