Philippine Airlines (PAL) planes are seen parked on tarmac in Manila International Airport in Pasay city, Sept. 9, 2014. — REUTERS/ROMEO RANOCO/FILE PHOTO

Billionaire Lucio C. Tan, through his private firm Buona Sorte Holdings, Inc. (BSHI), is infusing “fresh and additional capital” worth P12.75 billion into the listed parent company of Philippine Airlines (PAL). 

In a disclosure to the exchange on Friday, PAL Holdings, Inc. said the management approved the $255-million (P12.75 billion) private placement by BSHI, the parent of Trustmark Holdings Corp.  

“The P12.75 billion private placement represents the full and final payment of BSHI’s subscription to 10.2 billion new common shares of (PAL Holdings) at a subscription price of P1.25 per share in favor of BSHI,” the company said, adding the amount will be received in cash.  

This comes after PAL Holdings increased its authorized capital stock to 30 billion from 13.5 billion with a par value of one peso per share. PAL Holdings said the increase would be integral to its goal of “sustainable profitability. 

“The purpose of the proposed increase of authorized capital of the issuer is to accommodate the fresh infusion of capital into the company by an affiliate company of the Lucio Tan Group of Companies. The new capital will in turn be invested into the issuer’s subsidiary, Philippine Airlines, pursuant to the court-supervised reorganization of PAL,” the company said in a Sept. 28 disclosure. 

PAL Holdings is the listed operator of cash-strapped flagship carrier Philippine Airlines.  

One of the country’s richest men with an estimated net worth of $2 billion according to Forbes, Mr. Tan holds a 76.9% stake in PAL Holdings.  

As the pandemic battered global travel and tourism industry, Philippine Airlines filed for Chapter 11 bankruptcy in a New York court in September. Under its restructuring plan, the flag carrier sought to slash $2 billion in borrowings and to secure $505 million in equity and debt financing from existing shareholder and banks, as well as $150 million in loans from new investors. — KCGV