PAL Holdings on the road to financial freedom
The Securities and Exchange Commission has approved PAL Holdings’ application for quasi-reorgnization, which involves the decrease of its capital stock and the increase of the par value of its shares to wipe out deficit.
PAL will reduce its its capitalization to P13 billion from P30 billion. It will subsequently raise the par value of its shares to P1 per share from P0.45 each.
The SEC also approved PAL Holdings’ share swap transaction with the shareholders of Zuma Holdings and Management Corp. Under the deal, PAL Holdings shall issue 19 shares for every one Zuma share surrendered.
PAL HOldings is undertaking a quasi-reorganization to facilitate the entry of a new strategic investor next year.
PAL president and chief operating officer Jaime J. Bautista earlier disclosed that the flag carrier was in talks with possible investors interested to acquire up to 40 percent of the airline.
Morgan Stanley was appointed as financial advisor for the transaction. Revenues for the period January to September totaled P98.63 billion, 15.6 percent higher than last year’s same period figure of P85.35 billion.
Passenger revenues amounted to P81.96 billion from last year’s P71.47 billion, while cargo revenues amounted to P6.09 billion from P4.94 billion.
Total expenses grew by 27.3 percent to P103.82 billion from P81.55 billion primarily due to increase in flight frequencies and introduction of new routes.