The Securities and Exchange Commission (SEC) has approved PAL Holdings Inc.’s plan to undergo equity restructuring aimed at wiping out its deficit.
In a disclosure to the Philippine Stock Exchange, PAL Holdings said the equity restructuring calls for the elimination of its P253.73-million deficit as of March 31, 2007 using the additional paid-in capital amounting to P4.03 billion.
PAL Holdings (formerly Baguio Gold Holdings Corp.) earlier acquired six companies jointly holding 81.57-percent stake in its sister firm Philippine Airlines.
PAL Holdings acquired the combined 8.82 billion shares held by Pol Holdings Inc., Cube Factor Holdings Inc., Ascot Holdings Inc, Sierra Holdings and Equities Inc., Network Holdings & Equities Inc. and Maxell Holdings Corp. in PAL.
It also acquired the shares owned by the holding companies in PR Holdings totaling 50.59 million shares equivalent to 82.3 percent of PR Holdings outstanding common shares. These shares were acquired by way of dacion en pago to pay off P12.12 billion out of the P23.12 billion outstanding obligation of PAL and PR Holdings as of end-March 2007.
The remaining receivable of PAL Holdings from the six holding companies after the dacion en pago totaling P10.998 billion will be converted into additional paid-in capital in the six holding companies.