Philippine Airlines has deposited $200 million into a bank account for
creditors, saving itself from liquidation.
PAL’s creditors, who had set Friday as a deadline for the cash infusion,
have agreed to restructure the airline’s $2.2-billion debt.
Under the restructuring agreement, PAL must now cut about 3,000 jobs,
about one-third of its staff.
PAL is demanding that the Philippine government limit the rights of
foreign airlines serving the island. Philippine regulators set a dangerous
precedent recently by revoking the rights of Emirates airline to serve
Manila from Hong Kong.
PAL MEETS CASH DEADLINE
PAL MEETS CASH DEADLINE
