PAL to pay some bills

PAL to pay some bills

MANILA (AFP): Regulators on Monday authorized Philippine
Airlines (PAL) to pay lessors and creditors US$9.16 million, the
Securities and Exchange Commission (SEC).

The flag carrier, which is in receivership, had sought to make
the payments by April 15 to avoid aircraft being seized outside
the Philippines.

The SEC ruling said its approval was "without prejudice" to
the larger case of the debt-laden airline, which is seeking
regulatory endorsement of a rehabilitation plan that would
reschedule $2.2 billion in debt payments over 12 years.

Those to be paid are 16 lessors or creditors which financed
PAL's fleet modernization program. The funds are guaranteed by
the U.S. Export-Import Bank and European credit agencies.

PAL's interim receivers had told the SEC "there is a
substantial risk that, in the absence of an interim payment, one
or more of these lessors/creditors may take legal action to seize
aircraft in third country jurisdictions outside the Philippines
which may not be stayed by existing Philippine or US court
orders."