Philippine Airlines files bankruptcy on virus effects
The Peninsula
Philippine Airlines Inc. filed for Chapter 11 bankruptcy in New York with a lender-supported plan that helps the country’s main carrier recover after the pandemic devastated global travel.
The company aims to cut $2 billion in borrowings through a proposed restructuring plan, which needs court approval, it said. Philippine Airlines will also get $505 million in equity and debt financing from its majority shareholder, as well as $150 million of debt financing from new investors. The carrier said it has support agreements from 90% of its lenders. The restructuring plan will allow the carrier to reduce its fleet capacity by 25%, it said. The "recovery plan” will allow the airline to return at least 20 aircraft, the company’s management said in response to a Bloomberg News query. Philippine Airlines also cut 35% of its workforce early this year.More Related News