Supportive! Lucio Tan’s PNB extended P1.8B in loans to PAL to pay off lessors a few months before it sought bankruptcy protection
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Supportive! Lucio Tan’s PNB extended P1.8B in loans to PAL to pay off lessors a few months before it sought bankruptcy protection

Cash-strapped Philippine Airlines (PAL) got a big lift from Philippine National Bank in the first half of 2021.

Both companies are controlled by bilyonaryo Lucio Tan.

‘Kapitan’ lang malakas… ang loob! PAL claims only Lucio Tan willing to give airline $505M bailout even with 9.5% yield, superpriority claims on collateral

PAL revealed that it tapped its $36.8 million worth of standby letters of credit with PNB to pay off its lessors in the few months before the flag carrier filed its Chapter 11 bankruptcy protection on September 3.

Desperate times: Lucio Tan willing to lose the P17.9B he sunk into PAL just to get New York court’s approval on bailout

PAL is paying roughly $48 million in monthly lease payments on 85 aircraft in its fleet.

PNB, ChinaBank, BDO, AUB, UnionBank: Find out the biggest local creditors of PAL aside from Lucio Tan

PAL’s cash has dropped to $21.8 million at the end of August from $43.069 million at the end of 2020.

PAL said the new loan was converted into promissory notes and have been classified as part of its bank loans in the Chapter 11 filing.

The new loan is partially secured by a real property with an agreed value of P1.36 billion.

Based on its filing with the United States Bankruptcy Court for the Southern District of New York, PNB is the third largest secured lender with $156.51 million (aircraft and spare engine used as collateral) and the ninth largest unsecured creditor with $88.842 million.

Gasping for air: PAL says it won’t last beyond September if it doesn’t get $20M in fresh cash from Lucio Tan

PNB booked P19 billion in bad loan provisions in the first half of 2021, of which P16.9 billion was made in the second quarter.

Lucio Tan’s heir apparent Hun Hun gives lolo’s assurance to customers, partners: PAL will keep flying now and long into the future

This is nearly four times its impairment provisions of P5.08 in the same period in 2020.

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