Philippine Airlines files for bankruptcy as travel fallout rises

Philippine Airlines (PAL) planes are seen parked on tarmac in Manila International Airport in Pasay city, metro Manila. 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. - Reuters

MANILA, Sept 4 (Bloomberg): 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 US$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.