ABS-CBN Corp. said its board had rejected a proposal by one of its directors to shut down the company, pushing back against what it described as “PR attacks” linked to an internal family dispute.
In a statement on Wednesday, ABS-CBN said a director had proposed the company’s closure “without so much as discussing how it would meet its obligations” to employees, retirees and other stakeholders.
The company said the board majority instead argued for continued financial support to sustain operations, citing the need to protect workers and fulfill obligations.
ABS-CBN also disputed claims about its retirement fund, saying the decline in the fund was largely due to payouts made to nearly 6,000 employees who were retrenched following the loss of its franchise in 2020.
Allegations that 68 individuals received preferential treatment in retirement benefits were “repeated lies,” it added, noting that many of those cited were retirees who had agreed to defer payments until the company’s financial position improved.
“They did not get preferential treatment. In fact, they deferred receipt of payment so that the thousands of employees who were separated from the company received their separation pay in full,” the statement read.
ABS-CBN also denied claims that a proposed P2-billion capital infusion would be used to fund retirement payouts, saying this had been refuted by all but one board member.
The board member was not named in the statement, but the family holding firm, Lopez Inc., on Tuesday said that President and CEO Federico “Piki” Lopez had proposed the liquidation of the network last year.
Piki Lopez, ousted by a majority of the Lopez Inc. board in February over allegedly questionable energy asset transactions, has secured a court restraining order.
Piki, who runs the family’s energy business, had reportedly bucked demands by cousin Eugenio “Gabby” Lopez III to use proceeds from an energy asset sale to revive ABS-CBN, which was once the country’s dominant broadcast network.
Piki is currently an ABS-CBN director and Gabby formerly headed the network.
ABS-CBN acknowledged that it continued to face financial challenges following the loss of its franchise, but added that it has since posted “steady, consistent improvement,” with its board and members of the Lopez family supporting its continued operations.
ABS-CBN shares on Wednesday dropped P0.08, or 2.42 percent, to close at P3.22 each amid a 0.84-percent uptick for the benchmark Philippine Stock Exchange index.
