PAL Holdings approves equity restructuring
PAL Holdings' board approved (28-Mar-2017) an equity restructuring to wipe off the company's existing deficit and the additional deficit that will be booked upon the acquisition of Zuma Holdings Management and its subsidiary Air Philippines. PAL Holdings will decrease its authorised capital stock from PHP30 billion (USD598 million) to PHP18 billion (USD359 million) by reducing the par value of 30 billion common shares from PHP1 (USD0.02) to PHP0.6 (USD0.012) per share, without returning any portion of the capital to stockholders. The resulting reduction surplus will be used together with additional paid in capital to wipe out its projected deficit as of 30-Apr-2017. Philippine Airlines' board approved a similar equity restructuring to reduce its par value from PHP0.2 (USD0.004) to PHP0.13 (USD0.003) per share, so it can apply the resulting reduction surplus against its deficit as of 31-Dec-2016. The airline will decrease its authorised capital stock from PHP20 billion (USD399 million) to PHP13 billion (USD259 million). [more - original PR]