BRIEF-Philippine Airlines Says U.S. Bankruptcy Court Approved Plan Of Reorganization

Dec 20 (Reuters) – Philippine Airlines:

• U.S. BANKRUPTCY COURT OF THE SOUTHERN DISTRICT OF NEW YORK HAS APPROVED PLAN OF REORGANIZATION

• FILED A VOLUNTARY PETITION ON SEPT 3, 2021 FOR A PREARRANGED RESTRUCTURING UNDER THE U.S. CHAPTER 11 PROCESS

• RECEIVED OVERWHELMING CREDITOR SUPPORT THROUGHOUT PROCESS

• PLAN PROVIDES FOR OVER $2 BILLION IN PERMANENT BALANCE SHEET REDUCTIONS FROM EXISTING CREDITORS

• PLAN ALLOWS PAL TO CONSENSUALLY CONTRACT FLEET CAPACITY BY 25%

• PLAN INCLUDES $505 MILLION INVESTMENT IN LONGTERM EQUITY AND DEBT FINANCING FROM MAJORITY SHAREHOLDER

• PLAN IMPROVES CO’S CRITICAL OPERATIONAL AGREEMENTS

• EXPECTS TO RESTORE MORE ROUTES AND INCREASE FLIGHT FREQUENCIES AS TRAVEL RESTRICTIONS EASE AND BORDERS REOPEN

• EFFECTIVE DATE OF REORGANIZATION PLAN IS EXPECTED TO OCCUR BEFORE END OF 2021

(Reuters.briefs@thomsonreuters.com)