Philippine Airlines emerged from its voluntary Chapter 11 proceedings, completing its financial restructuring within four months. Philippine Airlines’ plan of reorganization provides for more than $2 billion in permanent balance sheet reductions from existing creditors.
Philippine Airlines received approval on a final basis from the U.S. Bankruptcy Court for the Southern District of New York to access its debtor-in-possession financing totaling $505 million, a core feature of the flag carrier’s restructuring plan.
The United States Bankruptcy court approved all first day motions on an interim or final basis for Philippine Airlines’ voluntary restructuring, including approving access to the first $20 million of its debtor-in-possession financing totaling $505 million provided by Buona Sorte Holdings.
Flag carrier Philippine Airlines is borrowing $38 million from a bank group led by Cathay United as lead arranger and bookrunner of a syndicated term loan.