Cebu Pacific plans to raise up to US$500 million to keep it flying.
It will issue convertible preferred shares and a will get a ‘private placement’ on its bonds, the airline said.
"The proceeds from this Business Transformation Fundraising Plan shall be used to strengthen the balance sheet of the corporation and general corporate purposes," Cebu Pacific said in a statement..
Its recovery plan will include the ‘right-sizing of the network and fleet to meet demand,’ and it will shift to a more digitally focused business.
"Due to this exceptional change in market conditions and industry dynamics, the corporation saw the urgent need to fast track its transformation. This places the corporation in a better position to respond," Cebu Pacific said.
The Philippines government has said it is willing to assist airlines but only those that are unable to access funding from the private sector.
"Travel restrictions imposed by various governments, both local and abroad, have led to abrupt reduction in passenger traffic and cast uncertainty over the near term prospects," the airline added.
Written by Ray Montgomery, Asia Editor
