Philippine Airlines has exited Chapter 11 bankruptcy protection in the US after completing a financial restructuring.
The announcement comes four months after the flag carrier filed for bankruptcy and follows approval of a restructuring plan which will see it reduce debt by more than $2 billion from existing creditors.
The airline said it had also streamlined operations and boosted liquidity, including $505 million in long-term equity and debt financing from its majority shareholder Lucio Tan.
It also retains the option to obtain up to US$150 million in additional financing from new investors, it said in a statement.
Gilbert Santa Maria, PAL chief operating officer, said: “There are immense challenges ahead, but we look forward to tackling them as a reinvigorated Philippine Airlines, better positioned for strategic growth to continue serving our customers.”