No “defined options” approved amid US bankruptcy filing

Metro Manila (CNN Philippines, June 23) – PAL Holdings on Wednesday dealt with reports of a planned bankruptcy filing, saying it had “not approved any definitive options.”

In a disclosure to the local exchange, the operator of Philippine Airlines clarified a report indicating that it was considering filing by June 29, saying it was “not aware” of the date mentioned.

“In line with our previous disclosure, PAL’s board did not approve any definitive options as of this date,” the listed company said, adding that the remedy and dates mentioned are “best guess from the sources of the industry they claim to have founded in. “

Chapter 11 is a form of bankruptcy, which allows the filing company to reorganize its affairs, debts, and assets to help it stay afloat. Reports from PAL Holdings allegedly seeking to file it rose again in May.

Earlier this month, the company reported 73 billion yen in losses in 2020 as the airline faced moderate travel demand in light of travel restrictions triggered by the COVID-19 pandemic.

The Philippine Stock Exchange also suspended trading in PAL Holdings shares effective June 18 after its independent auditor failed to provide an opinion on its financial statements, allegedly in violation of Rule 68 of the Code of Regulations. securities.

PAL Holdings said earlier it was working on the final stages of a “comprehensive restructuring plan” that will allow the standard bearer to emerge from the global health crisis with a stronger financial base. He added that he would also make the necessary disclosures “at the appropriate time, once the details are finalized.”

Meanwhile, PAL has ensured that its flights and operations will not be affected by the restructuring efforts.

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