Is Philippine Airlines bancrupt?

National carrier Philippine Airlines, which has bled more than P15 billion ($337.6 million) in the past two fiscal years, is spinning-off its three non-core units as a last resort to avoid bankruptcy.

PAL will spin off the following units by end of May 2010:

• in-flight catering services
• airport services, including ground handling, cargo handling and ramp handling
• and call center reservations

The move will enable PAL to save as much as P1 billion  ($22.5 million) a year, PAL President and COO Jaime Bautista said in today’s press briefing.

The airline, however, will still have to trim its workforce by 3,000 employees and pay up to P2.5 billion ($56.3 million) in compensation as part of cost-cutting measures. The employees’ compensation can be partially funded via internally generated funds while investors are willing to cover the balance, Bautista said.

Bautista added that PAL is in discussions with prospective foreign investors whose identity cannot be disclosed (PAL has signed a nondisclosure agreement) but who could put in 20 percent to 40 percent equity in the beleaguered airline. Will this help PAL to avoid bankruptcy? What do you think?