PAL's chairman may resign

Mon, 03 May 1999, 00:00 WIB | Source: DPA

MANILA (DPA): The chairman of ailing flag carrier Philippine
Airlines may resign after a major creditor withdrew its support
for PAL's rehabilitation plan, Philippine President Joseph
Estrada said Saturday.

Estrada added that due to this development, he has convened
his economic team for a meeting Monday to discuss the
government's next course of action.

The U.S. Export-Import Bank, which accounts for 16 percent or
US$2.2 billion of PAL's total loans, on Friday refused to support
the rehabilitation plan following a rejection by the Securities
and Exchange Commission (SEC) of the bank's demand that
professional managers who have resigned from PAL be reinstalled
in the company.

PAL's other European creditors have made the same demand
before they approve the airline's rehabilitation plan.

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