C05524-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Sep 6, 2017
2. SEC Identification Number
PW-94
3. BIR Tax Identification No.
000-707-922-000
4. Exact name of issuer as specified in its charter
PAL Holdings, Inc.
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
8th Floor, PNB Financial Center, President Diosdado Macapagal Ave. CCP Complex, Pasay City Postal Code 1307
8. Issuer's telephone number, including area code
(02) 816-3451
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common stock 24,836,512,096
11. Indicate the item numbers reported herein
Item 9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

PAL Holdings, Inc.PAL

PSE Disclosure Form 4-13 - Clarification of News Reports References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Clarification of News Report
Source ManilaStandard.net
Subject of News Report PAGCOR rejects PAL offer
Date of Publication Sep 5, 2017
Clarification of News Report

06 September 2017


DISCLOSURE DEPARTMENT
THE PHILIPPINE STOCK EXCHANGE, INC.
Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City


Attention : MR. JOSE VALERIANO B. ZUNO III
OIC – Head, Disclosure Department


Gentlemen:

This refers to your letter dated 06 September 2017, seeking clarification of the news article entitled “PAGCOR rejects PAL offer” posted in Manila Standard on 5 September 2017. The article reported in part that:

“State-run Philippine Amusement and Gaming Corp. said Tuesday Philippine Airlines is barred from building a new passenger terminal at the former Nayong Pilipino complex.

Pagcor said in a statement PAL’s contract with a former management of the state-run gaming corporation only included the use of the rented property as ‘an aircraft parking ramp/apron facility.’

‘Hence, it is prohibited from using the leased premises for any other business or purpose [including the construction of a new terminal] without prior written consent from Pagcor,’ it said.

. . . .

The property was sold by Philippine Reclamation Authority to Pagcor on May 12, 2009.



Pagcor said the current management’s review of the lease contract with PAL discovered that the ‘lessor is not yet the absolute and registered owner of the property’

‘Therefore, since Pagcor has no absolute authority to lease out the property, PAL does not acquire any right to the possession of enjoyment thereof, notwithstanding the contract of lease executed between the two parties,’ it said.

‘The previous board caused the acceptance of P21 million as downpayment from PAL but later issued an order to Pagcor’s Treasury Department not to accept the lease payment from PAL,’ Pagcor said.

. . . .

PAL president and chief operating officer Jaime Bautista earlier said the airline was currently in talks with possible investors. ‘We’re hoping we can close the deal within the year,’ he said.

The investor is expected to acquire up to 40 percent of the flag carrier. PAL tapped Morgan Stanley as financial advisor for the transaction.

. . . .”

Reference to your request for clarification on the above-quoted article, please be advised that while it is true that the present lease agreement with the Philippine Amusement and Gaming Corp. (PAGCOR) is for the use of the property as “an aircraft parking ramp/apron facility”, PAL has offered to the government, through the Transportation Department and the NAIA Authorities to build the terminal facilities as an extension of the Terminal 2 facilities, which it presently occupies. If the proposal merits the approval of the appropriate government authority, PAL is prepared to renegotiate the terms of its contract with PAGCOR.

We trust that you will find everything in order.

Very truly yours,
PAL Holdings, Inc.

By:



Atty. MA. CECILIA L. PESAYCO
Corporate Secretary
Other Relevant Information

N/A
Filed on behalf by:
Name Ma. Cecilia Pesayco
Designation Corporate Secretary