ABS-CBN Corp. said a proposal to shut down the company was raised at the board level, but most directors opposed it and pushed for continued operations.
“Records show that one of our directors proposed shutting down ABS-CBN without so much as discussing how it would meet its obligations to its people. Records also show that the majority of the directors strongly argued for continued financial support for ABS-CBN rather than liquidation to address the welfare of the company’s employees and retirees, as well as its other stakeholders,” the company said in a media release on Wednesday.
The company said the matter arose amid what it described as continued “PR attacks” linked to a family dispute over the company’s future.
ABS-CBN said the decline in its pension fund resulted from payouts to more than 6,000 employees affected by the loss of its franchise. It rejected claims that the board had considered shutting down the company without addressing obligations to workers and retirees.
“These continued public PR attacks against ABS-CBN are a disservice to the employees who have fought so hard to keep ABS-CBN alive, and to the public that has supported ABS-CBN throughout all its trials,” it said.
The company also denied allegations that 68 individuals received preferential treatment in retirement benefit payouts, calling the claims “repeated lies” meant to create intrigue among employees.
It said most of those cited were retirees who have received only partial or no benefits and have agreed to defer full payment until the company’s financial position improves.
ABS-CBN also rejected claims of a supposed P2-billion capital infusion linked to the payouts, calling them false.
“These public PR attacks on ABS-CBN’s pension fund, its business performance, and its leadership prove that the individual/s behind these releases do not have the best interests of the company at heart,” it said.
Last month, ABS-CBN said it was not a party to a dispute involving the Lopez family and described reports of a proposed P2-billion capital infusion and alleged executive payouts as baseless.
The statement followed reports of a dispute involving businessman Federico R. Lopez, who filed a lawsuit over his ouster as president and chief executive officer of Lopez, Inc., whose units include ABS-CBN, First Philippine Holdings Corp., and First Gen Corp. — Ashley Erika O. Jose
