Philippine Airlines gets court approval for debt forgiveness plan

Philippine Airlines (PAL) has received court approval for its US Chapter 11 recovery plan, which includes the forgiveness of $2.1 billion in debt.

The US Bankruptcy Court of the Southern District of New York approved the airline's plan of reorganization, a significant step after filing for Chapter 11 protection on September 3.

PAL secured overwhelming support from its creditors, with 100 percent of the votes cast by aircraft lessors, lenders, original equipment manufacturers, and maintenance providers approving the plan.

Airline president and COO Gilbert F. Santa Maria expressed gratitude for the support from customers, employees, shareholders, partners, and the government, which was crucial in reaching this milestone.

The airline's billionaire owner, Lucio Tan, has committed to supporting PAL's recovery with a $505 million investment through equity and debt.