The group, composed of three family factions controlling 71 percent of the parent firm, said the plan would have left nearly 4,000 employees without jobs and cut off public service at a critical time.
Funding over shutdown
Instead of closing the network, the majority said it infused hundreds of millions of pesos, both personally and through their holding firm, to keep operations running.
They pointed to early signs of a turnaround as justification for backing continued operations over liquidation.
“The majority, in a gesture akin to their parents’ commitment to serve, voted against his proposal and instead contributed hundreds of millions of pesos—both personally and through their family corporation—to keep the network operating,” the group led by Gabby Lopez said in a statement on Tuesday.
“While challenges remain, there are encouraging signs of a potential turnaround,” it added.
ABS-CBN will endure
ABS-CBN has been struggling with losses and debts since its flagship television broadcast business was shut down during the Duterte administration in 2020.
The firm has since narrowed losses and reduced liabilities, although its financial challenges are far from over.
“ABS-CBN is an institution that serves the public and the country. It will survive and grow once more. The majority will make sure of that,” the group added in the statement.
Loss of trust
The majority stressed that Lopez’s removal was driven by loss of trust, not just his position on ABS-CBN funding.
“We simply do not trust him,” said group, which earlier explained the company 's by-laws “allow the removal of any corporate officer even without cause by a majority vote.”
The group also disputed claims that 68 ABS-CBN retirees received preferential treatment, saying this was misleading. It said many of them had voluntarily deferred part or all of their retirement pay so other employees could be paid.
“Piki has been using ABS-CBN issues as a diversion to block his removal, arguing that his removal stemmed from his vote not to fund the network,” the statement said.
What happened before
The dispute stems from First Gen’s hydropower and gas deals with tycoon Enrique Razon Jr.’s Prime Infrastructure.
The Lopez majority earlier moved to oust Piki Lopez, who heads the parent firm Lopez Inc., though a court order has stalled the move.
The power deals with Razon include terms that could expose First Gen to over P23 billion in losses if Piki and his representatives are removed from control.
—Edited by Miguel R. Camus
