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Author Topic: Philippine Airlines declares bankruptcy, files for defense against US court  (Read 467 times)

Wewing

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Philippine Airlines declares bankruptcy, files for defense against US court

Philippine Airlines, the national airline of the Philippines, has filed for custody under Section 11 of the US Bankruptcy Act. which will make the Philippines Airlines are able to restructure their finances affected by the crisis caused by the COVID-19 pandemic.

Philippine Airlines said Friday its restructuring plan, which was filed with the New York Southern District Court and required approval from that court. will allow the Philippines Airlines cuts its fleet by 25% and aims to cut borrowing costs by $2 billion.

The debt restructuring plan also includes long-term debt. and a $505 million long-term loan from the airline's majority shareholder. as well as additional financing of $150 million from new investors.

Parent company PAL Holdings and subsidiary PAL Express Airlines are not included in the receivership application under Section 11.

The court's filing stated that Rolls-Royce and Lufthansa Technic are Philippines Airlines' largest unsecured creditors, and trade creditors and suppliers are not expected to be affected by the debt restructuring plan. such



 

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