Philippine Airlines Inc. (PAL) is moving forward with an equity restructuring scheme that would allow the flag carrier to wipe out an old deficit and clear the way for the entry of an investor group.
PAL Holdings said in a filing at the Philippine Stock Exchange that its subsidiary PAL had sought the approval of the Securities and Exchange Commission to reduce its authorized capital by a third to P13 billion.
PAL sought to reduce the par value of its shares from P0.20 each to P0.13. Once approved, PAL would file for a subsequent increase in its par value to P1 a share.
The reduction is part of PALs quasireorganization which, once effected, will eliminate the deficit, which accumulated due to the companys losses …
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