The total liabilities of Philippine Airlines (PAL)—including its outstanding obligations to foreign aircraft suppliers—stand at almost $5 billion, making its proposed debt restructuring plan the largest in the country’s history.
“This [amount] is due to new accounting rules on [aircraft] leases that were implemented in 2019,” a company insider told the Inquirer, even as he explained that the actual amount of loans excluding these assets was “much smaller than that.”
According to company insiders, the flag carrier’s total liabilities are expected to fall to around $3 billion once its rehabilitation plan is approved by US courts, possibly as soon as next month.
“PAL will likel…
Keep on reading: PAL, banks grapple with looming $5-B debt rehab–biggest in PH history