On September 3, 2021, Philippine Airlines, Inc. (PAL) filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The case is administered under Case No. 21-11569 before the Honorable Shelley C. Chapman.
During the Chapter 11 case, PAL will continue to operate flights in the normal course of business in full accordance with safety regulations, and expects to continue to meet its current financial obligations to employees, customers, the government, and its lessors, lenders, suppliers, and other creditors.
PAL, which is the flag carrier of the Philippines and the country’s only full-service network airline, filed for Chapter 11 to implement a consensual restructuring that it reached with substantially all of the Company’s lenders, lessors, and aircraft and engine suppliers, as well as its majority shareholder. The proposed restructuring plan, which is subject to bankruptcy court approval, allows the Company to successfully restructure and reorganize its finances to navigate the COVID-19 crisis and emerge as a leaner and better-capitalized airline.
PAL Holdings Inc., which is listed on the Philippine Stock Exchange (PSE: PHI), and Air Philippines Corporation, known as PAL Express, are not included in the Chapter 11 filing.
Additional resources for customers and other stakeholders, and other information on PAL’s filings, can be accessed by visiting the Company’s restructuring website at www.PALrecovery.com.