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Philippine Airlines Approved to Borrow $20M to Start Bankruptcy

Sept. 9, 2021, 5:08 PM

Philippine Airlines Inc., the flagship carrier for the island nation, won court approval to borrow money from its controlling shareholder to start its bankruptcy case in the U.S.

  • The $505 million financing package is being provided by indirect equity owner Buona Sorte Holdings and the airline’s direct parent, PAL Holdings
  • An unusual clause allows the airline to convert half of the loans to unsecured debt and half to equity once Philippine Airlines exits bankruptcy, according to court papers
  • U.S. Bankruptcy Judge Shelley Chapman, who is based in Manhattan, gave the company interim permission to draw $20 million from ...

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