PAL Clarifies Statement

PAL Holdings today clarified that reports about its possible exit from its Chapter 11 bankruptcy proceedings is a "statement of hope or wish" from the senior management of Philippine Airlines which has filed for creditor protection due to mounting losses brought about by the pandemic.

Photo Insert: The statement made by PAL was not based on any legal consideration.

In a disclosure to the Philippine Stock Exchange, the airline said that "we wish to clarify that it is a statement of hope or wish from the senior Management of PAL that the Chapter 11 process will end quickly rather than a statement based on any legal consideration."

There is no certainty that the judicial proceeding will terminate quickly that will allow PAL to exit Chapter 11 process before the end of 2021, PAL said.

It will all depend on the acceptance, opposition, or agreement of the creditors, lessors, and other stakeholders to the proposed rehabilitation/ restructuring of PAL. At best, it is an optimistic view of the speaker which may not necessarily happen, it added.

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