MANILA, Sept 6 — Philippine Airlines said Saturday it was filing for bankruptcy in the United States to slash US$2 billion (RM8.29 billion) in debt as it tries to survive an industry gutted by the coronavirus pandemic.
The national carrier of the Philippines said the filing will allow it to restructure contracts and cut debt by at least US$2 billion while getting US$655 million in fresh capital when it emerges from the Chapter 11 process.
PAL will also downsize its fleet by 25 per cent and re-negotiate contracts to reduce lease payments.
“Philippine Airlines will continue business-as-usual operations while finalising the restructuring of our network, fleet and organisation,” senior vice president and chief financial officer Nilo Thaddeus Rodriguez said in a video message. Read more