PAL Holdings cuts capital stock in equity restructuring

THE board of directors of PAL Holdings, Inc., the listed operator of flag carrier Philippine Airlines (PAL), has approved an equity restructuring to wipe off existing deficit and the additional deficit that will be booked upon the acquisition of Zuma Holdings Management Inc. and its subsidiary, Air Philippines, Inc., decreasing its authorized capital stock from P30 billion to P18 billion.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, PAL Holdings said that it will decrease its authorized capital stock from P30 billion divided into 30 billion common shares with a par value of P1.00 per share, to P18 billion divided into 30 billion common shares with a par value of P0.60 per share, without returning any portion of the capital to stockholders.