Zuma and PAL Holdings shifts to abrupt halt to pave way for 5-star aim

Ram Christian S. Agustin | January 10, 2018

The Securities and Exchange Commission has approved the PAL Holdings Inc. request for a trading suspension spanning five days starting Wednesday at the Philippine Stock Exchange where the disclosures on charter amendments are still pending.

PAL Holdings' objective is to clear their balance sheet as a restructuring of the said company equity to attract and allocate space for possible investors and clients from Jan. 3 to 9.

SEC has issued certificates approving for the voluntary trading suspension that was requested by the company namely:

• A reduction in the authorized capital stock by changing the par value of shares from P0.45 to P1 per share.

• A decrease in capital stock from P30 billion divided into 30 billion shares with the par value of P1 each to P13.5 billion divided into 30 billion shares with the par value of P0.45 each.

• The valuation of P8.24 billion shares of stock will be applied as full payment for the additional issuance of around 1.65 billion common shares with a par value of P1 each with applied paid-in capital of P6.59 billion.

For every Zuma Holdings and Management Corp. share however, 19 shares will be issued by PAL Holdings for the approved valuation of the share-swap transaction.

The Philippine Airlines operates with Air Philippines Corp whereas the latter's 99.97 percent is owned by Zuma.

This is all envisioned by tycoon Lucio Tan and his group to turn PAL into a 5-star airline in the span of four years.