We value our continued partnership

To our valued vendors and suppliers:

Our restructuring process will strengthen Philippine Airlines financially and enable us to reinvest in our operations to better support you as a partner. U.S. Chapter 11 financial restructuring is a well-established legal process that enables businesses to execute their financial recovery plans while continuing to operate and serve the public.

You are important to our business and we value the relationship that we have built with you.  

Our highest priority is the safety and health of our employees, passengers and communities. And nothing about that will change as we undergo financial restructuring.

As we undergo Chapter 11 restructuring, we are expecting to secure US$505 Million in long-term equity and debt financing along with US$150 Million of additional debt funding and US$2.0 Billion in permanent balance sheet reductions as part of our agreements with key creditors and stakeholders.

We have the liquidity to continue operating in the normal course throughout this process. Importantly, this process is not an insolvency proceeding or liquidation.

Below are a few important things to know:

  • Throughout the Chapter 11 process, we will continue to honor all our current financial obligations to customers, and ongoing trade vendors and suppliers. 
  • This applies to any goods and services invoiced to Philippine Airlines Inc.
  • You should experience no change whether your contract is with a filing entity (PAL) or a non-filing entity (e.g., PAL Express).
  • PAL will continue to operate flights in the normal course of business in full accordance with safety regulations. 


How do I know if my contract is with a filing entity?

You can find more information and a full list of filing entities at www.kccllc.net/PAL.

How will the restructuring affect PAL’s relationship with suppliers/vendors? Can I continue to work with PAL throughout the filing?

Yes. We will be following the court process, but our partnership with you has always been and remains extremely important to us. We hope to continue business together going forward as we always have. For specific questions and information, please visit www.kccllc.net/PAL.

Will I continue to be paid in a timely manner throughout the restructuring process? Will there be any changes to my current payment process / schedule?

We will honor all financial obligations. For more details on the payment process, please get in touch with PAL’s claims agent at (866) 967-0671 (US Toll Free) or (310) 751-2671 (International), or visit the website www.kccllc.net/PAL.

Will vendors have the same contact persons in PAL?

We expect to continue usual, day-to-day business operations throughout the restructuring process, which includes the same individuals being your points of contact unless and until you are informed otherwise.

How will future orders be handled from this date forward? How can I be sure you have the ability to pay invoices?

All passenger and cargo flights will continue to operate, subject to demand and governmental travel restrictions. We will provide timely updates if there are any changes to shipping services. We expect to receive new long-term financing to provide sufficient liquidity to continue our operations in the ordinary course of our business, including to pay our ongoing suppliers during the restructuring.

Who can I speak with to get more information?

You can find more information and a full list of filing entities at www.kccllc.net/PAL


If you have any questions related to our process, please do not hesitate to reach out to your normal company contacts.