‘Piki torching the house he’s supposed to protect’ — Lopez cousins

Insider Spotlight

• Lopez family majority says several First Philippine Holdings subsidiaries could default if cousin Federico “Piki” Lopez is removed from First Gen.
• The group described the provisions as “poison pills” that could trigger billions of pesos in losses.
• The latest issue centers on financing tied to First Gen’s investments in Prime Infrastructure’s hydropower and gas businesses.
  
  
  

Energy Development Corp. (EDC), First Balfour, and First Gen could face loan defaults if Federico “Piki” Lopez is removed from First Gen, according to a statement released by the Lopez family majority on Wednesday.

In a statement on Wednesday, May 6, 2026, the family group said the default risk stemmed from provisions attached to financing arrangements tied to First Gen’s investments in Prime Infrastructure assets.

The statement described the provisions as the “third poison pill” they had uncovered, claiming the arrangements could financially hurt the very companies they were supposed to protect.

“He has in effect threatened to torch the very house that sheltered him all these years. In fact, his family branch which owns 29 percent of the Lopez group, would also lose billions, all for one reason: Piki must not lose his job”, the Lopez majority said.

Why it matters

The dispute highlights escalating tensions within the Lopez family over control of First Philippine Holdings and its subsidiaries, including First Gen.

The family majority warned that a default could force their companies to immediately repay loans or incur penalty rates, potentially constraining future borrowing and affecting operations.

Under the arrangement cited by the family, First Philippine Holdings secured a P25-billion standby letter of credit from BDO Unibank to help fund First Gen’s P62-billion investment in Prime Infrastructure’s hydropower business.

The Lopez majority said the default provision was disclosed in First Gen’s April 17 press release.

What they’re saying

The family majority said they were neither consulted nor informed about the investments and financing facilities tied to the transactions.

They also claimed they had been unsuccessful in obtaining additional documents and details from Lopez regarding the agreements.

The statement further alleged that earlier “poison pill” provisions would allow Prime Infrastructure to acquire First Gen’s stakes in certain projects at discounted prices if Lopez were removed.

According to the family majority, Prime could purchase First Gen’s P50-billion stake in a gas project and its P62-billion stake in a hydropower business at a 25-percent discount, resulting in combined losses of around P24 billion.

What’s next

The public dispute could intensify scrutiny over governance, disclosure practices, and succession issues within the Lopez business group as investors assess the financial and operational implications of the contested financing arrangements. —Daxim L. Lucas | Ed: Corrie S. Narisma