PAL To Raise Capital To $600 Million

28 September 2021

Flag carrier Philippine Airlines (PAL) has approved yesterday the raising of authorized capital stocks of the company to US$600 Million, ahead of the Bankruptcy hearing in New York Thursday.

The Board resolution will be presented to the airline stockholders on 25 November 2021 for approval.

The airline has approved capital stock of US$260 million, of which $140 million is traded in the local stock market.

The move will result to increase in market capitalization of $368 million for the struggling carrier, almost threefold from the existing stocks offered to the public.

The increase capitalization is seen to cover advances of existing stockholders for conversion to equity once the resolution is approved by the stockholders in November.

The move is required by the New York Court to balance the books of the airline and authorizes it to prepare exit out of Chapter 11 before the end of this year.