Philippine Airlines completes financial restructuring, exits US Chapter 11 bankruptcy

Philippine Airlines has completed its financial restructuring and emerged from Chapter 11 bankruptcy in the United States.

The flag carrier's recovery plan includes the removal of $2.1 billion in debt, a slight increase from previous reports.

The plan was approved by a US bankruptcy court on December 17, after receiving overwhelming support from creditors.

The airline is also streamlining its business by returning over 20 planes, reducing its fleet to 70 aircraft.

The Tan family has committed $505 million in debt and equity capital infusions, with an option for an additional $150 million from new investors.

PAL Director Lucio C. Tan III expressed gratitude for the opportunity to rebound from the pandemic and continue serving as the flag carrier.