PAL's chairman may resign

Mon, 03 May 1999 | 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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