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Philippine Airlines Inc. received US court approval to access a $505m debtor-in-possession financing, which is core to its restructuring plan.

"This important step confirms that our recovery process is on track," Philippine Air President Gilbert Santa Maria said in a statement.

Getting full access to the long-term equity and debt financing will give the Lucio Tan-led airline additional liquidity to meet obligations and continue operating as usual. It expects to emerge from Chapter 11 bankruptcy before the end of the year, with a leaner fleet and fewer destinations as travel demand isn't likely to recover anytime soon.