PAL Holdings, the parent company of Philippine Airlines (PR, Manila Ninoy Aquino International), has amended its application to the Philippine Stock Exchange (PSE) to increase its authorised capital to take into account additional share subscriptions which were in the form of a share swap.

In a July 4 filing with the PSE, PAL Holdings said "certain creditors" of Philippine Airlines had swapped 323.77 million common shares in the airline for 5.041 billion shares in the publicly listed PAL Holdings at an exchange rate of one Philippine Airlines share for 15.57 PAL Holdings' shares. Forty-six entities took part in the share swap, including subsidiaries of Avolon, Macquarie AirFinance, Philippine National Bank, Rolls-Royce, and ORIX Aviation Systems. The share swap was in addition to the cash PAL Holdings had already received from its earlier decision to increase its capital. PAL Holdings is trying to increase its authorized capital stock from PHP13.5 billion Philippine pesos (USD243.2 million) to PHP30 billion (USD540.5 million) to accommodate an injection of funds into the company from affiliated entities.

In February, the board of PAL Holdings approved the issuance of over 5.6 billion common shares to unsecured creditors in exchange for shares in Philippine Airlines. However, in its filing this week, PAL Holdings said not all creditors choose to participate in the share swap.

Philippine Airlines exited US Chapter 11 bankruptcy provisions in late 2021, wiping out around USD2 billion in debts in the process. The airline, which is not publicly listed itself, performed well in 2022 from a financial perspective but is reported to have had lease and debt obligations of PHP20 billion (USD360 million) in the 12 months to June 30, 2023. PAL Holdings, itself owned by entities associated with Filipino magnate Lucio Tan, says it will reinvest the capital raised back into the airline.