PAL files ‘recognition petition’ in PH | Inquirer Business
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FOLLOWING CHAPTER 11 FILING IN US

PAL files ‘recognition petition’ in PH

/ 04:08 AM September 22, 2021

Philippine Airlines (PAL) has filed a “recognition petition” in the country after seeking Chapter 11 creditor protection in the United States.

The move, which was meant to comply with local laws, was confirmed by PAL president Gilbert Santa Maria during a virtual meeting on Tuesday.

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“The recognition petition filed by PAL before a local court is a petition, which aims to ensure that the Philippine legal system recognizes all proceedings and decisions rendered by the foreign court handling the Chapter 11 case,” PAL spokesperson Cielo Villaluna said on Tuesday.

PAL filed a voluntary and pre-arranged Chapter 11 plea in the US last Sept. 3 to eliminate roughly $2.1 billion in debts.

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The carrier also committed to return 21 aircraft, cutting its fleet to 70 planes, and raise around $655 million in new financing to be mostly backed by its controlling shareholder, billionaire Lucio Tan.

Alongside other airlines, PAL is asking the government to loosen “burdensome” travel restrictions for vaccinated passengers.

PAL had proposed that international passengers be tested 72 hours before departure. They will also undergo quarantine upon arrival and take an RT-PCR test on the third day. If the result is negative, passengers can be released on the fifth day and continue their quarantine at home. “Based on the data presented, testing before departure helps reduce positivity rate and risk,” PAL said.

“The proposal would also enable passengers to save as much as P25,000 aside from enjoying a more comfortable quarantine in the comfort of their own home,” it added.

PAL also requested the COVID-19 Inter-Agency Task Force to consider placing North America on the list of green countries. Passengers flying from countries on the green list were qualified for shorter quarantine periods.

PAL said the North American market contributed about $1 billion to revenues before the pandemic.

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TAGS: Business, Philippine Airlines (PAL)
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