Flag-carrier Philippine Airlines (PAL) is seeking a restructuring of its debts amid the massive financial losses it incurred from the coronavirus disease 2019 (Covid-19) pandemic, and has informed the Department of Finance of such a plan.
PAL said in a statement on Wednesday that it was working on “a comprehensive recovery and restructuring plan” to continue surviving amid the pandemic.
PAL Holdings Inc., the operator of PAL, said it recorded losses reaching P29.03 billion in the first nine months of 2020, a 370-percent increase from the P7.86 billion losses recorded a year earlier.
“PAL informed the DoF (Department of Finance) team of their plans last week but gave no details on any assistance they may need from us,” Finance Secretary Carlos Dominguez 3rd said in a Viber message on Wednesday.
Among the options PAL could seek to solve its financial problems is seek court protection from its creditors, and seek the help of government banks to restructure it debt. Based on data from wsj.com, PAL Holdings had short-term debts amounting to P18.53 billion while the current portion of its long-term debt stood at P29.71 billion at the end of 2019. SOVEREIGNPH