PAL negotiating $100-M loan

Philippine Airlines’ (PAL) listed operator PAL Holdings, Inc. said Tuesday that the airline is “in the process of negotiating an additional $100m, three-year term loan from international lenders.” “As at the date of emergence from Chapter 11, PAL had a cash balance of $391 million,” it noted. The listed company’s shareholders had approved last year the increase in capital from P13.5 billion to P30 billion. PAL Holdings said it is preparing for the stock swap to be offered to the new shareholders of the airline. The airline will file an application for equity restructuring with the Securities and Exchange Commission, specifically to partially wipe out its deficit as of Dec. 31 “using the reduction surplus generated upon its decrease of capital in December 2021,” the listed company noted. “Ownership in [the airline] is expected to increase to 100% upon approval of [PAL Holdings’] application for increase in capital to P30 billion where creditors holding 20% of the capital stock of [the airline] shall have exchanged their shares for [PAL Holdings’] shares.”<br/>