C06217-2021

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 13, 2021
2. SEC Identification Number
PW-94
3. BIR Tax Identification No.
000-707-922
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) 8810-2451
9. Former name or former address, if changed since last report
Not Applicable
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 11,610,978,242
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 Reports
Source manilastandard.net
Subject of News Report “US court okays PAL’s rescue funding”
Date of Publication Sep 10, 2021
Clarification of News Report

September 13, 2021

DISCLOSURE DEPARTMENT
THE PHILIPPINE STOCK EXCHANGE, INC.
Philippine Stock Exchange Plaza,
PSE Tower, 5th Avenue corner 28th Street,
Bonifacio Global City, Taguig City

Attention: MS. JANET A. ENCARNACION
Head, Disclosure Department
Gentlemen:

This refers to your letter dated September 13, 2021, seeking clarification of the news article entitled “US court okays PAL’s rescue funding” posted in manilastandard.net on September 10, 2021. The article reported in part that:

“Philippine Airlines Inc. said Friday it secured an approval from US Bankruptcy Court in New York to access the first $20 million from a $505-million loan facility to support operations.

The airline unit of tycoon Lucio Tan said the US Chapter 11 court approved all ‘First Day’ motions on an interim or final basis for PAL’s voluntary restructuring following petitions filed on Sept. 3, 2021.

It said the approvals marked an important step forward in PAL’s recovery plan, which would reduce the company’s debt by $2 billion and help the airline recover from the impact of the global pandemic.

‘This is a significant step in our recovery plan and supports our ongoing operations to continue serving our valued customers and connecting the Philippines with the world. The combination of our substantial creditor support and the court’s approvals enables us to progress toward an expedited emergence and full recovery,’ said PAL president and chief operating officer Gilbert Sta. Maria.

‘As travel demand increases and restrictions ease, we continue to increase domestic and international flights, while maintaining the safety and health of our passengers and employees,’ he said.

The orders granted by the US Bankruptcy Court for the Southern District of New York allow PAL to operate in the normal course, ensuring that the company can continue to serve customers as a full-service airline and the flag carrier of the Philippines.

PAL received authorization to honor and maintain all customer programs, including valid tickets and travel vouchers, Mabuhay Miles and benefits and refund obligations, subject to PAL’s usual terms and conditions of use. Mabuhay Miles members can expect to continue to accrue and redeem Mabuhay Miles as usual.

The airline also allows PAL to pay ongoing suppliers and trade creditors in the ordinary course for goods and services delivered throughout the Chapter 11 process.

It will continue to pay all employee wages, compensation and benefit obligations, subject to the continuation of any temporary work arrangements as necessary and maintain employee benefit programs in the ordinary course of business throughout the Chapter 11 process.

PAL was also granted to access the first $20 million of its debtor-in-possession financing totaling $505 million led by majority shareholder Buona Sorte Holdings.
. . . .”

We confirm that in an Interim Order issued by the United States Bankruptcy Court of Southern District of New York, dated September 09, 2021, the Debtor PAL was authorized to borrow or access the DIP loan facility up to an interim aggregate principal amount of USD20Million. The Court recognized that the Debtor PAL requires immediate access to the DIP Loan Proceeds in order to maintain its assets, to pay employees, and to fund its operations. The ability of PAL to operate in an orderly reorganization process is essential to the preservation of the going concern value of its assets. After a thorough review and assessment of the Motion filed, the Court granted authority to PAL to access the DIP Loan facility as reported herein.

Hope the above clarifies your query.

Very truly yours,

PAL HOLDINGS, INC.

By:

MA. CECILIA L. PESAYCO
Corporate Secretary
Other Relevant Information

None.
Filed on behalf by:
Name Ma. Cecilia Pesayco
Designation Corporate Secretary