Fresh from its emergence from receivership after more than nine years of protection from creditors, Philippine Airlines (PAL) is seeking foreign investors as it eyes further expansion.

PAL emerged from receivership early in October and says the move "provides greater flexibility for PAL as it seeks to grow its fleet, expand services and venture to new markets". To support further expansion it is seeking to offer shares in publicly traded parent company PAL Holdings to foreign institutions.

"We will be embarking on a road show across Asia, Europe and North America to drum up interest in a limited offering of shares in PAL Holdings," says president Jaime Bautista. The carrier entered into receivership in June 1998 after nearly collapsing under huge debts. It originally expected to emerge from protection around the end of a 10-year "rehabilitation" period which began in mid-1999, but says a better-than-expected financial performance in recent years enabled it to do so earlier.

PAL says its stronger financial position is also enabling it to expand again. It is adding up to 20 Airbus A320s to its fleet.

PAL emerged from nine years in receivership in October

Source: Airline Business