Philippine Airlines Files for Bankruptcy

Photo: AFP / FILE
Photo: AFP / FILE
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Philippine Airlines Files for Bankruptcy

Photo: AFP / FILE
Photo: AFP / FILE

Philippine Airlines said Saturday it was filing for bankruptcy in the United States to slash $2 billion in debt as it tries to survive an industry gutted by the coronavirus pandemic.

The national carrier of the Philippines said the filing will allow it to restructure contracts and cut debt by at least $2 billion while getting $655 million in fresh capital when it emerges from the Chapter 11 process.

PAL will also downsize its fleet by 25 percent and re-negotiate contracts to reduce lease payments, according to AFP.

"Philippine Airlines will continue business-as-usual operations while finalizing the restructuring of our network, fleet and organization," senior vice president and chief financial officer Nilo Thaddeus Rodriguez said in a video message.

As part of agreements reached with suppliers, lenders and lessors, Rodriguez said PAL will secure $505 million to execute the recovery plan. The money will later convert into airline equity and long-term debt.

It will also obtain another $150 million in debt funding after it emerges from the restructuring process "in a few months", Rodriguez said.

Philippine air travel volume collapsed by 75 percent from about 30 million passengers in 2019 to seven million last year due to pandemic restrictions, PAL president Gilbert Santa Maria said in the same video.

The carrier cancelled more than 80,000 flights, wiping out $2 billion in revenue, and let go of 2,300 employees.

Its main shareholder injected more than $130 million in emergency liquidity and a non-strategic asset was sold for more than $70 million.

Santa Maria said PAL now operates 21 percent of pre-pandemic flights to 70 percent of its usual destinations.



Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol

Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol
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Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol

Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol

Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud approved on Thursday the Saudi riyal symbol in a historic move that will reinforce the Saudi currency's identity.

SAMA Governor Ayman Al-Sayari extended his profound appreciation to the Custodian of the Two Holy Mosques and Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Crown Prince and Prime Minister, for launching the Saudi riyal symbol.

A Saudi Central Bank (SAMA) statement quoted Al-Sayari as saying that this decision reinforces Saudi Arabia's financial identity locally, regionally, and internationally. He indicated that the implementation of the new symbol will be gradual for financial and commercial transactions, with coordination across all relevant entities.

Al-Sayari said this initiative aims to promote national identity and cultural belonging, highlight the role of the national currency, and showcase the Kingdom among major global economies and G20 members. The initiative also signifies the increasingly important role of the national currency in the global financial ecosystem.

The Saudi riyal symbol

The governor acknowledged the collaborative efforts that have facilitated this achievement, extending his appreciation to all contributing entities involved in the symbol's development project led by SAMA, including the Ministry of Culture, the Ministry of Media, and the Saudi Standards, Metrology and Quality Organization.

According to the statement, the Saudi riyal symbol, developed to the highest technical standards, embodies the Kingdom's rich cultural heritage, carrying the name of the national currency "Riyal" in a design derived from Arabic calligraphy.

"The symbol will streamline the representation of the Saudi riyal in local, regional, and international contexts, making it suitable for use in referring to the Saudi riyal in all financial and commercial transactions," said the statement.

As Saudi Arabia advances its Vision 2030 agenda, the launch of the symbol solidifies the importance of the Kingdom's financial system and its increasing role regionally and internationally.