PAL Plans to Restructure Finances for Company’s Future, Takes Bankruptcy Filing Option
PAL – The Philippine Airlines which is a top airline company in the country filed for bankruptcy in New York amid the COVID-19 crisis.
The COVID-19 pandemic caused the closure of several businesses in different countries across the globe. In the Philippines, many companies shut down leading to a loss of income to many people as well. A lot of businesses were not able to cope with the demands of the pandemic.
Amid the crisis, everyone has to adhere to the measures taken to prevent the spread of the virus. Among these are the community quarantine measures that put limits on business operations. Also, everyone is encouraged to stay at home if not for very essential purposes thus, although businesses may be allowed to operate, the number of services availed or the clients really drop.
Among the business fields that are greatly affected by the pandemic is the airline industry. Several countries including PH continue to implement travel restrictions thus there is a decrease in the number of flights.
Also, many people don’t want to risk their health and safety for any travel activities. The airlines have previously expressed a seek for help from the national government.
Visibly, the impacts of the pandemic are pushing even the big companies to the edge. Based on a report on ABS-CBN News, even the Philippine Airlines (PAL) that is a giant company in the country needs to restructure its finances. It decided to apply for bankruptcy.
According to the report, PAL filed for bankruptcy in New York. It filed Chapter 11 creditor protecting proceedings and it is subject to the approval of the US court. It is in line with the move to slash its fleet size by 25% and raise a funding of $655 million or P32.6 billion.
PAL expressed that the move will “allow the company to successfully restructure and reorganize its finances to navigate the COVID-19 crisis and emerge as a leaner and better-capitalized airline”.
With regards to flight operations of the airline amid the proceedings, they will not be affected. All valid tickets, refund applications, vouchers, and Mabuhay Miles will still be honored.
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