On March 1 this year, ABS-CBN said the loan maturity date was extended by six months to Sept. 1, 2025, under the same terms, its annual report showed.
Despite ongoing financial challenges, ABS-CBN prepaid loans to BPI (P500 million) and Union Bank of the Philippines (P618.4 million) in 2024.
SkyCable also gets reprieve
Subsidiary Sky Cable Corp. also successfully signed an agreement with creditors for its debts.
In the report, SkyCable said a term sheet was approved by all creditors last Feb. 11.
“Among the significant terms included in the term sheet are the revised amortization payments and interests,” ABS-CBN said.
ABS-CBN ended 2024 with total interest-bearing loans and borrowings of P15.82 billion, down 8 percent from the previous year.
ABS-CBN itself owes P11.34 billion, while SkyCable’s obligations amounted to nearly P4.5 billion.
ABS-CBN gets debt deals after selling most of broadcast complex
Last Feb. 27, ABS-CBN signed an agreement to sell most of its iconic broadcast complex in Quezon City to the Zobel-led Ayala Land Inc.
The proceeds from the P6.24 billion sale, payable over a decade, will be used to reduce the media giant’s obligations.
ABS-CBN’s financial struggles began in 2020 after efforts to renew its broadcast franchise were killed by former president Duterte’s allies in Congress.
Because ABS-CBN must meet certain financial ratios, its lenders have only agreed to hold off on enforcing loan terms, such as demanding immediate payment or seizing collateral, until December 31, 2024.
ABS-CBN confident it can pay near-term obligations
“Management assessed that the group will be able to maintain its positive cash position and settle its liabilities as they fall due within the next 12 months,” ABS-CBN said in its annual report.
It also remains in talks with lenders on waiving 2025 financial ratios, extending the standstill deadline, selling assets to repay loans early, and refinancing its debts.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
