Philippine Airlines files for bankruptcy - TravelMole


Philippine Airlines files for bankruptcy

Friday, 05 Sep, 2021 0

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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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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