Philippine Airlines (PAL) plans to raise around 10 billion peso ($380 million) from its shareholders in an effort to reduce its debt-to-equity ratio and help underwrite a $4 billion fleet-renewal programme.
Shareholders will vote on 11 February on a two-stage recapitalisation plan involving the issue of a total of 2 billion new shares in 1997 and 1998. In September 1996, PAL chairman and majority owner Lucio Tan injected 5 billion pesos into the group, to bring its capitalisation up to 10 billion pesos. The latest proposals will see that redouble.
PAL has also gone ahead with a $200 million international bond issue, as promised by the group in August 1996 .
Source: Flight International