Philippine Airlines Inc. (PAL) Obtains Court Approval for its Recovery Plan | Business
MANILA, Philippines – (BUSINESS WIRE) – Dec. 17 2021–
Philippine Airlines, Inc. (PAL) has announced that the US Southern District of New York Bankruptcy Court has approved its reorganization plan (the âPlanâ). PAL filed a voluntary petition on September 3, 2021 for a pre-arranged restructuring under the U.S. Chapter 11 process, and received overwhelming support from creditors throughout the process.
âToday’s court approval represents a critical moment in our journey to become a stronger airline. We are grateful to our loyal customers, our dedicated employees and the support of our shareholders, partners and government, who have enabled us to move forward effectively throughout the process and reach this milestone, âsaid Gilbert F. Santa Maria , President and COO of PAL. Officer. âWe still have a few procedural steps to take before we can complete the Chapter 11 process, after which we will focus intensely on service to the public, on the lingering challenges of the pandemic and economic recovery, and on keeping the links alive. that unite our archipelago. “
The consensus plan was accepted by 100% of the votes cast, which came from PAL’s major aircraft lessors and lenders, original equipment manufacturers and providers of maintenance, repair and overhaul, and some funded lenders. The plan provides for more than US $ 2.0 billion in permanent reductions in existing creditors’ balance sheets, allows PAL to consensually contract its fleet capacity by 25%, improves PAL’s critical operational arrangements, and includes an investment of US $ 505 million in long-term equity and majority debt financing of PAL. shareholder.
The plan’s effective date is expected to come before the end of 2021.
PAL continues to operate flights to 32 international destinations and 29 domestic destinations from its hubs in Manila, Cebu and Davao. The Philippine national carrier plans to restore more routes and increase the frequency of flights as travel restrictions ease and borders reopen. After the plan is implemented, PAL will be in a better position to capture travel demand and meet the needs of citizens of the world, actively contributing to the Philippine economy.
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 dossier.
Additional resources for clients and other stakeholders, as well as other information on PAL’s cases, can be accessed by visiting the Company’s restructuring website at www.PALrecovery.com.
Court records and other documents related to the Chapter 11 process in the United States are available on a separate website administered by PAL’s claims officer, KCC, at www.kccllc.net/PAL. Information is also available by calling (866) 967-0671 (US / Canada) or (310) 751-2671 (International).
Debevoise & Plimpton LLP, Norton Rose Fulbright US LLP and Angara Abello Concepcion Regala & Cruz (ACCRA) are acting as legal advisers and Seabury Securities LLC as financial advisor and investment banker to the Company.
About Philippine Airlines
Philippine Airlines, Inc. (PAL) is the national carrier of the Philippines and the country’s only full-service airline. PAL was the first commercial airline in Asia and celebrated its 80th anniversary in March 2021. The young fleet of Boeing 777, Airbus A350, Airbus A330, Airbus A321 and De Havilland DHC Q400 operates from hubs in Manila, Cebu and Davao has 29 destinations in the Philippines and 32 destinations in Asia, North America, Australia, Europe and the Middle East. PAL was ranked as a 4-star global airline by Skytrax in 2018 and a major 5-star airline by the Association of Airline Passengers (APEX) in 2020, and was also named the world’s most improved airline in the 2019 global survey. Skytrax to passengers.
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CONTACT: Media contacts
PAL Corporate Communications (Manila)
[email protected] (New York)
KEYWORD: PHILIPPINES ASIA PACIFIC
INDUSTRY KEYWORD: TRANSPORT AIR TRANSPORT TRAVEL
SOURCE: Philippine Airlines, Inc.
Copyright Business Wire 2021.
PUB: 12/17/2021 11:12 a.m. / DISC: 12/17/2021 11:12 a.m.
Copyright Business Wire 2021.