Philippine Airlines (PR, Manila Ninoy Aquino International) parent PAL Holdings received an enthusiastic welcome from the stock market this week when it resumed trading following a nine-month hiatus, financial media report.
PAL Holdings' shares gained 9.26% on the Philippines Stock Exchange (PSE) when it re-entered the market on March 28. Shares settled at a 5.40% gain to close at PHP6.64 peso (USD127.7) per share on March 30, 2022.
According to a filing with the Securities and Exchange Commission, the PSE lifted its trading suspension after the corporation had reissued its 2020 financial statement. It was able to do so after the US Bankruptcy Court in New York had confirmed the exit plan from Chapter 11 bankruptcy protection of Philippine Airlines, the corporation's primary subsidiary.
The reissued 2020 financial statements included additional disclosures concerning the progress of PAL's financial restructuring process, which include, among others, the completed negotiations with its creditors, lessors, and maintenance providers, the confirmation of the US Bankruptcy Court of the airline's restructuring plan, and the key initiatives to support the plan. "In view of the US Court's confirmation of the plan [...] the report from the external auditor of the corporation on the reissued 2020 financial statements has been updated," the filing read.
PAL Holdings' shares were last traded on June 16, 2021. The PSE had halted its trading after auditors declined to provide an opinion on its 2020 financial report showing PHP71.8 billion (USD1.3 billion) in losses amid the pandemic-induced slump. This meant the corporation violated stock market rules which require an auditor's opinion to prove that the company's financial statements were fairly presented and following the generally accepted accounting principles, reported Business Inquirer.
Philippine Airlines completed its financial restructuring within four months to emerge from bankruptcy protection early in January 2022.
