MANILA, Jan. 1 (Xinhua) -- The Philippines Airlines (PAL) has emerged from bankruptcy and completed its financial restructuring to keep the company afloat amid the pandemic.
In a statement released late Friday, PAL said the company is now "well-positioned for long-term growth with reduced debt and additional liquidity," adding that the company has emerged "as a more efficient airline with a strengthened balance sheet."
Under the newly effective recovery plan, PAL has the option to obtain up to 150 million U.S. dollars in additional financing from new investors.
As it navigates the continuing risk of the pandemic and its economic impact, the company said it will continue to reinstate and expand routes while investing in digital transformation and its growing cargo business.
Specifically, PAL said it plans to restore more routes and increase flight frequencies as travel restrictions ease and borders reopen, including the resumption of regular flights to multiple cities in China.
"PAL stands ready to help grow back the Philippines' local and international air travel markets in ways that renew the tourism industry, serve the needs of global citizens including overseas Filipinos, and contribute actively to the recovery of the Philippine economy," said PAL Chairman and CEO Lucio C. Tan.
Last September, PAL filed for Chapter 11 bankruptcy in the United States to pursue a restructuring plan to keep the company afloat amid the COVID-19 pandemic. Chapter 11 is a form of bankruptcy that involves reorganization, allowing a company to stay in business and restructure its obligations. Enditem