Bilyonaryo Lucio Tan had proposed to give stock bonuses and other perks to the management of financially distressed Philippine Airlines (PAL).
But the PAL chairman changed his mind and dropped this perks program for directors and officers in the flag carrier’s restructuring term sheet for its Chapter 11 bankruptcy application filed with the United States Bankruptcy Court in the Southern District of New York.
Based on its original term sheet on 10 June 2021, PAL included a a management equity incentive plan.said its proposed $505 million debtor-in-possession (DIP) loan – $250 million for Tranche A and $255 million for Tranche B.
READ: Lucio Tan averts PAL closure in September after court OKs $20M in financing
PAL proposed to allocate 10 percent of its equity for “grants (or restricted stock units, options or other instruments) made from time to time to the directors, officers, and other management of the reorganized company, subject to the terms and conditions established from time to time in the discretion of the new board.”
PAL’s new board of directors shall be designated by PAL’s Tranche B lenders (if they opt to convert their debt to 79.5 percent equity in PAL Holdings within 12 months after getting Chapter 11 protection). Tan’s Buona Sorte and PAL Holdings (the airline’s parent) are bankrolling the $505 million DIP loans.
READ: PAL expects to emerge from bankruptcy before year-end
But in its most recent filing with the New York court this September, PAL dropped the proposed management incentive plan.
The post Lucio Tan drops 10% stock perks for management in bailout plan of bankrupt PAL first appeared on Bilyonaryo Business News.
Lucio Tan drops 10% stock perks for management in bailout plan of bankrupt PAL
Source: Filipino Daily Inquirer
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