Philippine Airlines (PAL) was moving closer to filing Chapter 11 creditor protection in the United States, joining other global carriers in safeguarding assets during the severe business downturn caused by the COVID-19 pandemic.
Citing data from Cirium, online aviation news and information website FlightGlobal reported that PAL was seeking a restructuring agreement with creditors ahead of filing Chapter 11 proceedings potentially by the end of May.
PAL did not immediately reply to a request for comment on Wednesday.
Earlier reports indicated that PAL had some $5 billion in total liabilities—including its outstanding obligations to foreign aircraft suppliers.
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Keep on reading: PAL wants deal with creditors before filing for bankruptcy