Philippine Air’s Parent Halted From Trading After Audit Report

·1 min read
FILE PHOTO: A Philippines Airlines Airbus A350 lands at London Heathrow Airport, England on Monday 14th September 2020.  (Photo: Robert Smith/MI News/NurPhoto via Getty Images)
FILE PHOTO: A Philippines Airlines Airbus A350 lands at London Heathrow Airport, England on Monday 14th September 2020. (Photo: Robert Smith/MI News/NurPhoto via Getty Images)

By Ditas Lopez and Ian Sayson

Shares of Philippine Airlines Inc.’s parent company were suspended from trading on Friday after its auditor issued a disclaimer of opinion on its annual report.

The Philippine Stock Exchange (PSE) suspended trading of PAL Holdings Inc. shares from 9:30 a.m., extending a halt imposed on Thursday when the company submitted its annual report that showed it posting a record loss in 2020 due to the “extraordinary” impact of the pandemic.

The bourse said the report isn’t compliant with the Securities Regulation Code, citing accounting firm SyCip Gorres Velayo & Co.’s disclaimer opinion that it’s unable to obtain “sufficient appropriate” audit evidence for an opinion on PAL’s financial statement.

PAL Holdings reported a record P71.8 billion ($1.48 billion) loss in 2020, compared to a P10.3 billion shortfall the year before, the company said in a stock exchange filing Thursday. In the first quarter of 2021, its loss narrowed to P8.6 billion from P9.4 billion a year earlier. Management and stakeholders are working on the final stages of a comprehensive restructuring plan for the airline, it said.

SGV said that as PAL is embarking on a financial restructuring and is considering a pre-negotiated court rehabilitation plan, these events “give rise to material uncertainties that may cast significant doubt on the group’s ability to continue as going concern.”

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