PAL’s controlling shareholder, bilyonaryo Lucio Tan, and five local banks are among the top creditors of the flag carrier which has lost a total of P88.41 billion from the COVID breakout of 2020 to the first half of 2021 (this is on top of its cumulative losses of P22 billion from 2017 to 2019).
Tan’s Buona Sorte Holdings is the single biggest creditor of PAL with $358.3 million. Buona owns 60 percent of Trustmark Holdings (the remaining 40 percent is owned by Tan’s British Virgin Islands Horizon Global Investments) which owns 77 percent of PAL Holdings, the airline’s publicly-listed parent company.
Tan’s Philippine National Bank is the second biggest local creditor of PAL with $272.4 million in total loans, of which $115.9 million is unsecured.
PAL owes $171.253 million to Tan’s Air Philippines (PalExpress) under a codeshare agreement where PAL markets the codeshare flights while Air Philippines operates the flights based on agreed-upon rates. PAL also directly undertakes some of the expenses of Air Philippines under the codeshare deal.
It also has liabilities to Lufthansa Technik Philippines ($80.764 million) and MacroAsia Airport Services ($12.993 million), both of which are controlled by Tan.
Overall, Tan has at least $900 million in total exposure in PAL which had over $4 billion in outstanding financial debt obligations (of which $735 million was secured) as of end-2020.
The biggest local creditor of PAL next to Tan is China Banking Corp. of the Sy and Dee families, which extended $120 million in loans to the flag carrier, of which $65.3 million is unsecured.
Another bank controlled by the Sy-blings, BDO Unibank has a loan exposure of $80.42 million to PAL.
Asia United Bank of bilyonaryo Jacinto Ng is also a major PAL creditor with $75.302 million in loans.
The fifth biggest local lender of PAL is Aboitiz-led Union Bank of the Philippines with $20.079 million exposure.
PAL’s biggest foreign creditor is PK Airfinance SARL , a major aviation lender owned by GE Capital’s Aviation Services unit, with $334 million in total loans to PAL.
Its second biggest foreign obligation is an EXIM Bank guaranteed $240 million loan package from four banks – Wells Fargo Bank in Utah, Private Export Funding Corp. in New York, Toronto Dominion Bank, and BNP Paribas in Singapore.
PAL has also racked up a total of $30.326 million in unpaid dues to the government – $21.672 million to Manila International Airport Authority and $8.654 million to Civil Aviation Authority of the Philippines.
PAL has so far identified 45 of its creditors with a combined exposure of $1.391 billion.
The five largest creditors with secured claims have a combined $866.09 million loans to PAL:
1) PK Airfinance SARL $334.23 million
2) EXIM Guaranteed loans $240.1 million
3) PNB $156.51 million
4) BDO Unibank $80.42 million
5) China Banking Corp. $54.83 million
PAL also disclosed its 40 largest creditors (unsecured claims and not insiders) with a total loan exposure of $1.391 billion:
1) Buona Sorte Holdings $358.286 million
2) PNB $115.924 million
3) Asia United Bank $75.302 million
4) China Banking Corp. $65.272 million
5) Union Bank $20.079 million
1) Air Philippines $171.253 million
1) Nanshi Aviaton Leasing (Ireland) $34.41 million
2) SMBC Aviation (Ireland) $32.966 million
3) CIT Group Finance (Ireland) $32.804 million
4) Aviation Pacific Leasing $21.818 million
5) Celestial Ex-Im Trading (Ireland) $21.035 million
6) Wilmington Trust SP Services (Ireland) $18.633 million
7) Pajun Aviation Leasing 1 (Cayman Islands) $17.747 million
8) Pajun Aviation Leasing 2 $17.595 million
9) Pajun Aviation Leasing 3 $17.123 million
10) GE Capital Aviation Funding (Ireland) $16.354 million
11) CIT Aerospace International (Ireland) $13.014 million
12) Avolon Aerospace (Ireland) $11.329 million
13) SAF Leasing (Ireland) $11.156 million
14) ECAF 1482 DAC (San Francisco) $10.593 million
15) JPA No. 112 (Ireland) $10.3 million
16) Fly Aircraft Holdings Twenty-One Limited (Ireland) $9.313 million
17) Falcon 2019-1 Aircraft (Ireland) $8.183 million
18) Fly Aircraft Holdngs Twenty-Two (Ireland) $7.92 million
19) BNP Paribas (Japan) $6.213 million
20) DCAL 1 Leasing (Ireland) $6.179 million
21) Truenoord Boyne Limited (Ireland) $6.056 million
25) Haitong Unitrust No. 4 (Ireland) $5.832 million
26) Haitong Unitrust No. 3 (Ireland) $5.689 million
27) Avoloin Aerospace AOE 108 (Ireland) $5.302 million
28) Aircraft MSN 6253 (Ireland) $5.185 milion
* Maintenance service
1) Rolls Royce Singapore $89.034 million
2) Lufthansa Technik Philippines $80.764 million
3) AirFrance Industries (Thailand) $20.256 million
4) WE International Aero Engine (Connecticut,USA) $5.174 million
5) Lufthansa Hamburg Technik (Hong Kong) $9.191 million
1) Manila International Airport Authority $21.672 million
2) Civil Aviation Authority of the Philippines $8.654 million
* Ground handling
1) MacroAsia Airport Services $12.993 million