PAL informs lessors of Chapter 11 filing deadline: source

Philippine Airlines has informed its lessors of a plan to file for Chapter 11 bankruptcy protection in the USA by the end of May, three people with knowledge of the matter tell Cirium. “They are going to file before the end of May as long as they have the requisite support from creditors in terms of the majority they need to get it through and the prearranged fashion they’re going for,” says one of the people. PAL is putting together a prearranged insolvency, which the person describes as a “halfway house” between a pre-pack and the freeform filing that, for example, some of the Latin American carriers have used. “There are milestones and there are things that the airline then would have to do, there are commitments and DIP [debtor-in-possession financing] that have to materialise,” the person adds. “The DIP funding would have to come through and all of that is negotiated with the lawyers. That’s the approach they are taking.”<br/>