PAL TO BORROW BILLIONS

PHILIPPINE Airlines (PAL) has announced its intention to borrow billions in pesos from several banks to finance its working capital for the next fiscal year ending March 2012. CFO Jose Gabriel Olives told local media the airline “may still have to raise some additional working capital maybe another P2.5 billion or $50 million next year.” This figure is on top of the P2.5 billion that the airline already intends to raise via the refinancing of the severance package of the 2,600 PAL employees. PAL plans to borrow from state-run Development Bank of the Philippines and Land Bank of the Philippines