Aproposal to shut down ABS-CBN Corp. had been raised during board discussions but was ultimately rejected, as tensions within the Lopez family continue to escalate.
In a statement on Wednesday, the broadcasting firm cited records showing that “one of our directors proposed shutting down ABS-CBN without so much as discussing how it would meet its obligations to its people.”
But the company quickly pointed out that majority of directors had rejected the proposal and instead pushed for continued financial support to sustain operations and protect employees, retirees and other stakeholders.
The statement comes after the majority shareholders of family holding firm Lopez Inc., led by Eugenio “Gabby” Lopez III, said the network “will survive and grow once more” despite the family rift.
Gabby’s faction earlier claimed that Federico “Piki” Lopez had proposed shutting down the network last year, adding that such a move could have jeopardized thousands of jobs.
For its part, ABS-CBN did not identify the director but confirmed that a shutdown proposal had been raised during internal discussions.
But it stressed that the board had instead chosen to support the company’s operations, citing its obligations to employees and other stakeholders.
The company also refuted claims about preferential retirement payments, describing them as “repeated lies designed to sow intrigue among employees.”
It said most of the 68 individuals cited were retirees who had “received only partial or no retirement benefits” and had agreed to defer payment until the company’s financial position improves.
“These continued public PR attacks against ABS-CBN are a disservice to the employees and to the public,” the company said.
ABS-CBN added that the decline in its pension fund was largely due to payouts to nearly 6,000 employees who had been retrenched following the loss of its franchise in 2020.
The company also denied allegations that a P2-billion capital infusion would be used to fund retirement payouts.
ABS-CBN acknowledged that it has faced financial challenges in recent years, but pointed to “steady, consistent improvement” in its operations.
It said its board and the Lopez family have recognized the company’s progress and emphasized its continued importance to the public.
The Lopez family dispute is related to a move made by Gabby’s faction to replace Piki at the helm of Lopez Inc.
Piki had been ousted by the Lopez Inc. board, but a court order later blocked his removal from group companies.
