MANILA, Philippines — ABS-CBN Corp. has confirmed that a proposal to shut down the broadcasting network was raised during board discussions but was ultimately rejected by the majority of directors, even as tensions within the controlling Lopez family continue to escalate.
In a statement issued Wednesday, the company revealed that "one of our directors proposed shutting down ABS-CBN without so much as discussing how it would meet its obligations to its people." However, the board overwhelmingly chose to continue supporting operations to protect employees, retirees, and other stakeholders.
The controversy stems from an ongoing feud between factions of the Lopez family. Majority shareholders of family holding firm Lopez Inc., led by Eugenio "Gabby" Lopez III, have asserted that the network "will survive and grow once more" despite internal conflicts. Gabby's faction has accused Federico "Piki" Lopez of proposing the network's shutdown last year—a move they claim could have jeopardized thousands of jobs.
"These continued public PR attacks against ABS-CBN are a disservice to the employees and to the public," the company stated.
ABS-CBN also addressed allegations about preferential retirement payments, calling them "repeated lies designed to sow intrigue among employees." The company clarified that most of the 68 individuals referenced were retirees who had "received only partial or no retirement benefits" and had voluntarily agreed to defer payments until the company's financial situation improves.
The network attributed the decline in its pension fund primarily to payouts made to nearly 6,000 employees who were retrenched following the loss of its broadcast franchise in 2020. Additionally, ABS-CBN denied claims that a P2-billion capital infusion would be used to fund retirement payouts.
Despite acknowledging financial challenges in recent years, ABS-CBN pointed to "steady, consistent improvement" in its operations. The board and the Lopez family have reportedly recognized this progress and emphasized the company's ongoing importance to the public.
The family dispute is linked to efforts by Gabby's faction to replace Piki at the helm of Lopez Inc., highlighting deeper divisions within one of the Philippines' most prominent business clans.