The Journal
Wednesday, December 23, 1998
PHILIPPINE Commercial International Bank, one of the creditors of cash-strapped Philippine Airlines, is supporting the downsizing of fleet of the airline to partially settle PAL’s domestic syndicated loan.
In a filing submitted to the Securities and Exchange Commission in connection with the rehabilitation plan of PAL, PCIB proposed that rotables and Airbus engines should be sold and proceeds applied to the P60milion domestic syndicated loan facility of PAL.
“After all this suggestion is similar to what petitioner (PAL) did with respect to another syndicate secured by Airbus planes, which when sold, the proceeds of the sale were applied to the syndicate loan,” PCIB said.
Under the rehab plan submitted by PAL, it is seeking a downsizing of its fleet from 52 to 22 aircraft. With the reduction, there would also be a reduction of rotables and Airbus engines because these would no longer be necessary.
Another creditor, Philippine National Bank, on the other hand, opposed the reduction in par value of existing common shares of PAL from 65 per share to P0.01 per share.
“We believe this valuation is too low and will substantially dilute out interest in the company.” PNB told the SEC. PNB is seeking a clarification on how the Interim Rehabilitation Receiver arrived at the P0.01 valuation of the share. ERM
No comments:
Post a Comment