ABS-CBN Corp., the Philippine media giant, has confirmed that a proposal to shut down the company was presented during recent board discussions, emerging amid a deepening rift within the controlling Lopez family.
In an official statement released Wednesday, the company disclosed that board records show one director advocated for liquidation without a clear plan to address obligations to employees, retirees, and other stakeholders. The majority of the board firmly opposed this drastic measure, instead pushing to sustain operations and protect the network's workforce and creditors.
"The majority of directors opposed the move. Instead, they pushed to sustain operations and protect the network’s workforce and creditors," the company stated.
The statement follows earlier assurances from the Lopez family majority, led by Eugenio “Gabby” Lopez III, that the network "will survive and grow once more" despite the internal conflict.
The majority faction, which holds 71 percent of the public firm Lopez Holdings Corp., identified Federico “Piki” Lopez as the proponent of the shutdown proposal last year. They warned that such a move would have jeopardized thousands of jobs. This group has been pressing for Piki Lopez to accept his removal as president and CEO of the private firm Lopez Inc., asserting he was dismissed through a 5-2 board vote for cause and rejecting his claim that the dismissal stemmed from disagreements over funding ABS-CBN.
In response to allegations circulating in the dispute, ABS-CBN also rejected claims that certain retirees received preferential treatment, labeling them "repeated lies" meant to mislead the public. The company clarified that most of the 68 individuals cited were retirees who had voluntarily deferred their benefits so that other employees could receive full separation pay.
The firm attributed the decline in its pension fund primarily to payouts made to nearly 6,000 workers who were retrenched following the loss of its broadcast franchise in 2020. ABS-CBN further denied that a proposed P2-billion capital infusion would be allocated for retirement payouts, noting that most board members had rejected this notion.
While acknowledging the financial strain it has faced since 2020, the company reported seeing "steady, consistent improvement" in its operations in recent periods. ABS-CBN pledged to continue responding to what it calls "untruths" that affect its stakeholders as the corporate and family dispute unfolds.