Philippine Airlines Files Bankruptcy as Travel Fallout Rises
- Carrier has creditor support to cut debt by $2 billion
- Covid-19 resurgence increased airline industry strain
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Philippine Airlines Inc. filed for Chapter 11 bankruptcy in New York with a lender-supported plan that helps the country’s main carrier recover after the pandemic devastated global travel.
The company aims to cut $2 billion in borrowings through a proposed restructuring plan, which needs court approval, it said. Philippine Airlines will also get $505 million in equity and debt financing from its majority shareholder, as well as $150 million of debt financing from new investors. The carrier said it has support agreements from 90% of its lenders.