Philippine Airlines Exits Bankruptcy with additional debt approval
The airlines received the go-ahead from the court after its reorganization plan didn’t face any major opposition from debt holders.
Philippine Airlines Inc. received approval to tap $150 million in additional financing and plans to cut its debt by $2 billion, after winning approval last month from a U.S. court for its reorganization plan.
“There are immense challenges ahead, but we look forward to tackling them as a reinvigorated Philippine Airlines, better positioned for strategic growth to continue serving our customers,” President Gilbert Santa Maria said in a company’s statement
The flagship carrier, is one of many to enter debt restructuring in the U.S.. as Aeromexico and Colombia’s Avianca Holdings have both sought court protection in New York.
The airline has the option to obtain up to $150 million in additional financing from new investors, it said in the statement.
as already been given permission to access $505 million worth of equity and debt financing to help it meet obligations..
The emergence of the omicron virus variant has triggered new restrictions, business closures, and that hit severely the tourism sector, in particular the airlines recovery.