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Philippine Airlines files for bankruptcy
After months of struggle and speculation over its long term future, Philippine Airlines filed for Chapter 11 bankruptcy in New York.
The company plans to trim liabilities by US$2 billion through a restructuring plan, which would require court approval and PAL plans to reduce its fleet by a quarter.
According to the proposal PAL will receive about US$500 million in equity and debt financing and an extra US$150 million from new investors.
It says 90% of its lenders approve the plan.
PAL management told Bloomberg the proposal calls for a 35% reduction in the workforce.
Owner Lucio Tan said it will be a ‘major breakthrough’ for the airline if it gets court approval.
The airline has struggled for many years and last posted a profit in 2017.
It posted a big annual loss in 2020.
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