Philippine Airlines, Inc. (PAL) said on Tuesday that it has filed a petition before a Pasay City court seeking recognition of the proceedings and decisions of a U.S. bankruptcy court hearing its chapter 11 case, BusinessWorld reported. “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 C. Villaluna said in a statement sent to BusinessWorld.
Philippine Airlines has pledged 15 aircraft, replacement engines and frequent flyer miles as collateral to secure loans needed as part of its ongoing restructuring process, ch-aviation.com reported. This is according to a Sept. 17, 2021, notice of filings of additional restructuring support agreements (RSA) between Philippine Airlines and various counterparties with the U.S. Bankruptcy Court in the Southern District of New York, where the airline is in voluntary chapter 11 bankruptcy proceedings aimed at paring off USD2.1 billion of its USD6 billion in debts.
Airline maintenance provider Lufthansa Technik Philippines (LTP) will lay off 300 employees in April due to the impact of the COVID-19 pandemic on the airline industry that forced some of its clients into bankruptcy, The Star reported. "This decision comes after careful study and consideration of the business situation as a result of the pandemic, its effects on the aviation industry," LTP president and CEO Elmar Lutter said in a letter to employees dated Feb. 11.