iskup is looking for electrical and mechanical trainees, legal age, high school drop out, 0943814499, 09916444376
in the news…
iskup supports January, National Bible Month; last week of January, National Bible Week; January 23,2022, National Bible Sunday
US court reorganization plan exits PAL fr. Bankruptcy
By J.Lo
“PAL has streamlined operations with reorganized fleet and is now better capitalized for future growth,” Philippine Airlines has has emerged from bankruptcy after US court approved its plan to slash up to $2 billion in debt and obtain additional capital.
The national carrier of the Philippines had filed for bankruptcy in the United States in September, seeking relief from creditors as it tried to survive devastation unleashed on the airline industry by the coronavirus pandemic.
Its court-approved reorganization plan includes $2 billion debt reduction and additional liquidity of $505 million from its main shareholder, PAL said in a statement.
It also has option to obtain up to $150 million in additional financing from new investors.
Air travel in the Philippines collapsed by more than 75 percent in 2020 due to travel restrictions imposed to contain coronavirus, according to government data.
From 60 million domestic and international passengers in 2019, traffic plunged to just over 13 million in 2020.
PAL said in September had cancelled more than 80,000 flights, wiping out $2 billion in revenue, and let go of more than 2,000 employees.
As borders reopen and travel restrictions ease, the airline will resume regular flights, including to cities in mainland China and Australia.
PAL Holdings Inc earlier said Pasay City court granted Philippine Airlines’ petition for recognition of its Chapter 11 filing in the US.
“We confirm that a Pasay City Court had granted Philippine Airline, Inc.’s petition for recognition of the proceedings and decisions of a United States bankruptcy court currently hearing its Chapter 11 case,” PAL Holdings said in a disclosure to the stock exchange.
A Chapter 11 bankruptcy filing does not mean the flag carrier is shutting down but instead it will be allowed to keep operating and pay creditors over a period of time.
Since filing, PAL has secured approval from a US court to access $505 million in debtor-in-possession financing.
The airline earlier assured public that the ongoing proceedings and restructuring won’t affect operations and that it would remain “business as usual.”
PAL also said there has been “no objection” recorded from creditors in both US Chapter 11 and Pasay Court filing.
Tycoon Lucio Tan’s Buona Sorte Holdings Inc (BSHI) will infuse $255 million (P12.75 billion) in fresh capital into PAL as part of its restructuring program.
The aviation industry is among hardest hit sectors by COVID-19 pandemic due to global mobility restrictions imposed to limit the spread of disease.
A court from the United States has approved PAL restructuring plan as part of its bankruptcy filing, “a critical moment” that could help the airline as it weathers impact of the pandemic, PAL said on Saturday.
In a statement, PAL would allow them to move forward with Chapter 11 process that they filed in September.
The move is aimed to “significantly reduce debt, streamline fleet and acquire additional liquidity,” the Lucio Tan-led flag carrier said.
“We have few more procedural steps to take before we can complete Chapter 11 process, after which we will focus intensely on serving public, navigating continuing challenges of the pandemic and economic recovery, and sustaining the links that connect our archipelago,” PAL President and COO Gilbert Santa Maria explained.
The airline earlier said restructuring plan would bring down debt by at least $2 billion. This includes implementing 25-percent reduction in its fleet by returning “several wide-body and narrow-body aircraft.”
It also includes $505 million in long-term equity and debt financing from PAL’s majority shareholder and $150 million of additional debt financing from new investors.
“The plan improves PAL’s critical operational agreements and includes US$505 million investment in long-term equity and debt financing from PAL’s majority shareholder,” the statement read.
The airline also noted that their pandemic recovery plan was “accepted 100 percent” by their lessors, lenders, and equipment maintenance providers.
PAL Holdings earlier said in a disclosure to the stock exchange the Bankruptcy Court authorized PAL to borrow or access the Debtor-in-possession (DIP) loan facility of up to an interim aggregate principal amount of $20 million.
In 2020, PAL Holdings reported net loss of P73 billion due to the “extraordinary impact” of the COVID-19 pandemic on the operations of Philippine Airines.
ISKUP! 