Airline restructures and plans for new investment
Philippine Airlines Inc. announced it “entered into a series of agreements with substantially all of its “lenders, lessors, and aircraft and engine suppliers, as well as its majority shareholder,” to allow PAL to restructure and reorganize its finances in light of the COVID crisis.
The restructuring, which is subject to court approval, provides mor than $2 billion in permanent balance sheet reductions from existing creditors and allows the airline to contract its fleet by 25%. It includes $505 million in long-term equity and debt financing from PAL’s majority shareholder and $150 million of additional debt financing from new investors.
As part of the agreement, PAL voluntarily filed through the U.S. Chapter 11 process in the Southern District of New York to implement the restructuring plan. PAL will also complete a parallel filing in the Philippines under the Financial Insolvency and Rehabilitation Act of 2010.
PAL will continue to operate flights, with all tickets, vouchers and mileage honored, and anticipates no disruption to its partners or vendors.
Similarly, it intends to increase flights “in line with market recovery,” the airline said in a Sept. 3 release.
Air Philippines Corp., which does business as PAL Express is not included in the filing. The airline is wholly owned by its chairman, Lucio C. Tan. PAL President Jaime Bautista told media in the Philippines that the incoming investor is an airline and said PAL could sell up to 40% to the investor.
Events update:
- Sept. 9 – Guam Business Magazine Sales and Marketing Forum, Hilton, POSTPONED
- Sept. 10 – Marianas Nature Alliance Green Gala, Aqua Resort Saipan, 6 to 10 p.m.
- Sept. 11 – Pink Ball, Dusit – to benefit Guam Cancer Care and Harvest House – POSTPONED
- Sept. 14 and 15 – GCA Safety Conference, Hyatt Regency Guam – POSTPONED
- Sept. 28 – NEW DATE: Fundraiser for Guam Conservatory of Arts, Barrigada (former Hafa Books), 6 p.m. to 8 p.m.
- Oct. 2 – Guam Chamber gala, Dusit Thani Guam Resort – CANCELLED
- Oct. 23 – Guam Chapter of the American Red Cross Red Ball, Hyatt
- Nov. 20 – Marianas Business Journal Golf Tournament, 11 a.m. for noon, Country Club of the Pacific
More sneak peeks on Crowne resort designs
Asia Pacific Hotels Inc. released renderings of both Crowne Plaza Resort Guam and Crowne Plaza Resort Saipan to the Journal on Sep. 2. The renderings include exterior amenities for the Guam location and interior amenities for Saipan.
Photos courtesy of Asia Pacific Hotels Inc.
And if you missed the story, See Polishing the Crowne: Hotels to open in 2021 and 2022 — Marianas Business Journal (mbjguam.com)
Leon Guerrero signs GEDA EO; All Rise program racks up applicants
Gov. Lourdes A. Leon Guerrero signed the executive order Sept. 7, kicking off the Guam Economic Development Authority’s Small Business Pandemic Assistance Grant 2021 program. The program will offer $27.3 million in American Rescue Plan Act funding instead of the $20 million originally planned. Applicants can begin to download the application from www.investguam.com from Sept. 8 and file from Sept. 9, according to the Office of the Governor.
In other financial news, Guam’s “All Rise” program – which will give $800 to applicants earning less than $40,000 or $1,600 to joint filers earning less than $80,000 for tax year 2020 has 31,024 applications as of Sept. 6. No word was given in the release from the Guam Department of Revenue & Taxation as to how close that number comes to the $30 million allocated for the program.
Additionally, Cycle 3 of the Emergency Rental Assistance Program for rental and utility assistance launched Sept. 6, with web applications on the Guam Department of Administration site at www.doa.guam.gov, according to a Sept. 4 release.
FSM extends quarantine days for returning residents
The Federated States of Micronesia is changing quarantine for returning residents from seven days to 10, to allow for testing twice before residents fly to the country. “The decision cited concerns over the Delta variant of COVID-19, which has resulted in mobile morgues in the U.S. state of Hawaii and the installation of medical tents in the U.S. territory of Guam due to hospital overflow,” a Sept. 6 release said. Flights are planned for Sept. 16 and Sept. 30, as the Journal earlier reported. As of Sept 6, approximately 60% of the FSM’s adult population is fully vaccinated, and approximately 70% is partially vaccinated, according to the release.
And also …
The fourth Ship Repair Transportation Boot Camp saw 17 apprentices complete coursework and training, ready for jobs at Cabras Marine Corp., according to a Sept. 7 release from Guam Community College.
The University of Guam Calvo Field House vaccine clinic – staffed by the Guam National Guard – reopened Sept. 4, and will operate from 11 a.m. to 6 p.m. For appointments see tinyurl.com/vaxguam. Walk-ins welcome.
The Blue Prosperity Micronesia Program’s Legal & Policy Framework Assessment Report for the is available at https://gov.fm/files/FSM_Legal_Framework_Assessment_V4_Final_27AUG21.pdf . The assessment surveys laws, policies, and governmental institutions of the Federated States of Micronesia relevant to the management of marine resources. Findings will inform discussions for policy and legal development in support of marine spatial planning, and the protection of the FSM’s marine waters. mbj
