Most creditors back Phil Airlines survival plan
May 18, 1999, 7:12 pm
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Most creditors back Phil Airlines survival plan
MANILA, May 17 (Reuters) - Most creditors of debt-ridden Philippine Airlines [PHL.CN] (PAL) have backed its rehabilitation plan, a spokesman for the carrier's receivership committee said on Monday.
Jaime Bautista, formerly chief operating officer of PAL and a member of its receivership committee, told reporters after a meeting at the Philippine Securities and Exchange Commission (SEC) that creditors representing 55 percent of the airline's debt had approved the plan.
He said those supporting the plan, which maps out a restructuring of debt after an injection of fresh equity of $200 million into PAL, included the Export Credit Agencies of Britain, France and Germany, foreign and local banks and suppliers.
The U.S. Export-Import Bank, which owns some 16 percent of PAL's $2.2 billion debt, did not support the plan, Bautista said.
``We are getting closer to getting an approval,'' he said, adding that in a case such as this it was difficult to please all the creditors.
The plan was thrown into doubt after Ex-Im Bank said it could not support the programme and blamed chairman Lucio Tan for many of the airline's woes.
Other creditors have also expressed concern but have said they remain committed to the plan.
The SEC, which had appointed the receivership committee, said it would hold a vote among the creditors to see if the plan should be pursued. The exercise was conducted over the weekend.
Tan, a Chinese-Filipino tycoon who has amassed much wealth from tobacco and liquor interests, has said he can raise $100 million of the required fresh equity, a pre-condition for the plan to go through.
Bautista said there was still no word of who would come up with the rest, although Tan has said he is in negotiations with several parties.
The government is making separate efforts to raise funds for the fresh equity but has stressed there were will be no state bail-out of the airline, Asia's oldest.
Jaime Bautista, formerly chief operating officer of PAL and a member of its receivership committee, told reporters after a meeting at the Philippine Securities and Exchange Commission (SEC) that creditors representing 55 percent of the airline's debt had approved the plan.
He said those supporting the plan, which maps out a restructuring of debt after an injection of fresh equity of $200 million into PAL, included the Export Credit Agencies of Britain, France and Germany, foreign and local banks and suppliers.
The U.S. Export-Import Bank, which owns some 16 percent of PAL's $2.2 billion debt, did not support the plan, Bautista said.
``We are getting closer to getting an approval,'' he said, adding that in a case such as this it was difficult to please all the creditors.
The plan was thrown into doubt after Ex-Im Bank said it could not support the programme and blamed chairman Lucio Tan for many of the airline's woes.
Other creditors have also expressed concern but have said they remain committed to the plan.
The SEC, which had appointed the receivership committee, said it would hold a vote among the creditors to see if the plan should be pursued. The exercise was conducted over the weekend.
Tan, a Chinese-Filipino tycoon who has amassed much wealth from tobacco and liquor interests, has said he can raise $100 million of the required fresh equity, a pre-condition for the plan to go through.
Bautista said there was still no word of who would come up with the rest, although Tan has said he is in negotiations with several parties.
The government is making separate efforts to raise funds for the fresh equity but has stressed there were will be no state bail-out of the airline, Asia's oldest.
