ABS-CBN confirms proposal of a shutdown amid Lopez family dispute

ABS-CBN has confirmed that one of its directors proposed to shut down the company, and to do so without meeting its financial obligations to employees and retirees.

According to a statement on April 15, the proposal was vetoed by the majority of the directors, who pushed for a continuation of operations for the sake of employees, retirees, and stakeholders. 

In the same statement, the media conglomerate sought to address the "PR attacks" the company continues to receive amidst the Lopez family dispute. 

In March, tycoon Federico "Piki" Lopez sued his cousins, who were also directors of family holding company Lopez Inc., for allegedly illegally ousting him as president of the company. Following a court order, the situation eased back to the status quo. 

However, soon after, ABS-CBN had to release a statement addressing several discrepancies that cropped up during the dispute.

Contrary to Lopez's claims of "unresolved audit findings" within the media arm, ABS-CBN said in a March 30 statement, "There were no audit findings. There is nothing to resolve."

The company also clarified that claims of "payouts for certain executives" were unfounded as "no such payouts have been made. No such payouts are planned."

Its statement on Wednesday asserted that the company's financial issues, particularly its pension fund, were the subject of a recent press release.

"Contrary to what the article claims, the largest decline in ABS-CBN's pension fund was due to payouts to close to 6,000 employees who were retrenched as a result of the franchise loss. This is proof of ABS-CBN's commitment to fully meet all its obligations to its employees," the statement read. 

In May 2020, ABS-CBN's 25-year legislative franchise expired. Two months later, the House of Representatives shot down the company's petition to renew its franchise. It has since transitioned into content creation and distribution, with its programs airing on partner channels. 

Since then, the company asserted it has "shown steady, consistent improvement," which its board of directors and the "rest of the Lopez family" have commended. 

Further in its statement, ABS-CBN decried the "repeated lies," saying 68 individuals were given priority in retirement benefits. 

"The majority of these individuals are retirees who have received only partial or no retirement benefits, despite already retiring. They have agreed to voluntarily wait until ABS-CBN's financial position improves before receiving full payment. They did not get preferential treatment," the company said. 

Rather than receive their retirement benefits in full, the company said the retirees deferred payment "so that the thousands of employees who were separated from the company received their separation pay in full."

"Repeated allegations that a P2 billion capital infusion would be used to pay out retirement benefits are also false," the statement read. 

Wrapping up, the company reiterated its mission "to be in the service of the Filipino," a legacy established by its founder, Geny Lopez, and upheld by his son Gabby and now, by its chairman, Mark Lopez. 

"The series of press releases claims that many of the decisions around ABS-CBN are not in line with proper stewardship or good investment. We leave it to the public to decide whether those actions remain true to the [Lopez] family's espoused values," the company wrote, adding, "This is a family dispute and should remain so."

The Lopez Group has not released a statement as of writing.