We know everything about bankruptcy
24/11/2024
Sunday
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
Philippine Airlines files for bankruptcy protection in US
The creditors have agreed to ‘forgive’ a $ 2 billion (100 billion Philippine francs) debt to the only airline in the Philippines having an IOSA certificate. PAL's chief financial officer, Nilo Thaddeus Rodriguez, said the company would make every effort to complete the restructuring on its own. At the same time, the results of its holding will depend on how quickly the world tourism business begins to recover. Many countries are still closed due to the coronavirus infection.
The head of the carrier, Lucio Tan III, also announced the company’s plans to continue the flights.
The grandson of PAL's CEO, a prominent Filipino billionaire, has announced plans to make the company a flagship national company for its 80th anniversary.
Philippine laws do not prohibit companies from continuing to operate during the restructuring period. The proposed financial recovery plan will reduce the aircraft fleet by almost a quarter. The number of PAL’s employees has already been reduced by 35% from January 2021.
It is known that the company has already held negotiations with Airbus. The parties agreed that the delivery of 13 narrow-body airliners will be postponed to a later date, and some of the orders may be canceled.
The company's appeal to a foreign court, as explained in the PAL management, is due to the fact that a significant part of the company's creditors are US residents and the use of the appropriate bankruptcy procedures will be more convenient.
The restructuring plan assumes that expenses will be reduced by $ 2 billion, and along with the borrowed capital of the Tang family, it is expected to receive new investments of $ 150 million.
Experts note that PAL will become the fourth foreign airline to go bankrupt in the United States. Earlier, Rusbankrot already wrote about the restructuring processes that affected the Colombian carrier Avianca and the Chilean holding Latam. This happened in May 2020. Following them, the Mexican airline Aeromexico filed for bankruptcy with the court of US.
