PAL equity restructuring gets SEC nod

Flag carrier Philippine Airlines Inc. has secured an approval from the Securities and Exchange Commission (SEC) to go ahead with an equity restructuring.

Parent PAL Holdings Inc. on Monday said this development will help finance debts amounting to P13 billion.

“We have just been informed by counsel that the request to undergo equity restructuring by the corporation’s subsidiary, Philippine Airlines Inc. (hereinafter “PAL”), has been granted by the Securities and Exchange Commission in a Certificate of Approval of Equity Restructuring dated 13 December 2017.

“Following the grant of the aforementioned request, PAL’s additional paid-in capital of P13,641,538,020.14 will be used to fully wipe off its deficit of P13,573,604,486.00 as of 31 December 2016,” it said.

PAL President and CEO Jaime Bautista earlier said the company would benefit from an equity restructuring which would entice a new strategic investor to come in.

In September, President Rodrigo Duterte gave PAL a 10-day ultimatum to settle navigational and other charges payable to the Civil Aviation Authority of the Philippines and the Manila International Airport Authority.

PAL settled in November P6 billion of liabilities through the Department of Transportation.

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(GMA News