April 24, 2024

Philippine Airlines files for bankruptcy in the US

Philippine Airlines files for bankruptcy in the US

Philippine Airlines has filed for Chapter 11 bankruptcy in the United States.

The basics in brief

  • Chapter 11 is often referred to as “reorganization bankruptcy.”

Philippine Airlines has filed for Chapter 11 bankruptcy in the United States. As the company announced, this move will enable it to restructure and reorganize its financial resources that have been affected by the pandemic.

Chapter 11 is often referred to as “reorganization bankruptcy.” It is intended for companies that want to continue their operations but need time to restructure their finances.

The company said the restructuring plan has not yet been approved by the court and includes $505 million in long-term financing from the airline’s majority shareholder and $150 million in additional debt financing from new investors. As emerged from the court order, Rolls-Royce and Lufthansa Technik are among the company’s largest unsecured creditors.

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