Philippine Airlines is not losing sleep over China Banking Corp.’s decision not to sign a restructuring support agreement with the bankrupt flag carrier.
“PAL reiterates and confirms that it believes that ChinaBank supports PAL’s restructuring given that ChinaBank has already signed a restructuring support agreement in respect of other loans impacted by the filing,” said PAL in a reply to the Philippine Stock Exchange.
The Lucio Tan-led airline revealed that ChinaBank was the only Philippine bank among PAL’s unsecured creditors which did not sign on PAL’s bailout plan.
ChinaBank acocunts for $65 million of the $274 million unsecured loans owed by PAL to creditors including Tan’s Philippine National Bank (PNB), Asia United Bank, and Union Bank of the Philippines.
ChinaBank has a $55 secured loan to PAL.
“PAL and the rest of the Lucio Tan companies have very strong and supportive relationship with the Sy’s led Chinabank,” PAL said.
PSE sought PAL’s comment on bilyonaryo.com’s story “$274M unsecured debt: Lucio Tan gets AUB, PNB, Union Bank OK to restructure PAL loans but Sy-blings’ ChinaBank defers signing bail-out deal.”
PAL has already secured RSAs with 90 percent of its creditors and lessors prior to the filing of Chapet 11 protection with the US Bankruptcy Court for the Southern District of New York.