Economy 1 MIN READ

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

December 19, 2021By 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)

This article originally appeared on reuters.com

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