Philippine Airlines' (PAL) newly appointed president Avelino Zapanta has sought to reassure its growing queue of disillusioned lenders, saying chairman Lucio Tan is considering putting up the entire US$200 million needed to keep the carrier afloat.
Led by the US Export-Import Bank, a number of secured creditors have sent angry letters to the Securities and Exchange Commission over the return of Mr Tan as chief executive.
Mr Tan is the majority shareholder in the ailing carrier which has more than $2.2 billion in over-due debts.
Mr Zapanta said yesterday the creditors' concerns 'have no basis in fact'.
In its letter, the Ex-Im Bank stated: 'We reiterate forcefully the reservation of [our] rights to take action to terminate the leases for the aircraft and to repossess the aircraft and seek all appropriate remedies following such termination.' But Mr Zapanta said Mr Tan was committed to turning PAL around and that on Wednesday he had fulfilled his promise to place in escrow $100 million of the minimum $200 million in new investment that PAL needs to keep operating.
Moreover, Mr Zapanta said that if no new investors could be convinced to infuse the remaining amount, Mr Tan might also shoulder the other $100 million.
Mr Zapanta was appointed the airline's president and chief operating officer in a management shake-up on Monday which also saw Mr Tan re-appoint himself as chief executive, only three months after the creditors had forced him to vacate that position after rejecting his first rescue plan.