PAL to seek court protection from creditors

Flag carrier Philippine Airlines (PAL) may file for Chapter 11 bankruptcy protection in the US by the end of the month, according to travel data and analytics company Cirium.

Cirium, in a report posted in FlightGlobal, said PAL’s lessors have been informed of the plan, citing people with knowledge of the matter.

Some 19 lessors are exposed to PAL for around 49 aircraft, according to Cirium data.

PAL has reportedly been planning to seek court protection from creditors as it undertakes debt restructuring as part of ongoing efforts to ensure the airline’s survival, with a Chapter 11 filing in the US among the considerations.

Cirium said Norton Rose Fulbright is serving as the airline’s counsel on the restructuring, while Seabury Capital has been appointed as restructuring adviser.

PAL said it would issue an official statement at the proper time.

PAL president and COO Gilbert Santa Maria, in a letter to PAL employees in February, said the company’s comprehensive financial restructuring, which marks the next phase of its recovery journey, would soon be under way.