ABS-CBN BARES PLANS ON CDO
ABS- CBN has disclosed to the Philippine Stock Exchange (PSE) today its plans on its business following the closure on a cease-and-desist order from the National Telecommunications Commission.
Saying that it is still a fluid situation , the broadcast firm said though that it will honor its debt commitments of P21.36 billion as the debt payments fall due. The debt’s tenor though is long-term it said.
Aside from assuring its creditors that it will honor its debt obligations, it said that it is reviewing its operations while saying that it would take care of the welfare of its employees, said to be above ten thousand.
The company said that it will undertake the following:
A. The company continues to operate the following: 1. Media, Networks, and Studio Entertainment: · Content Creation – entertainment, news, sports, movie, music, channels, other content. · Content Distribution –The Filipino Channel (TFC), ABS CBN News Channel (ANC), Teleradyo, Cinema One, Metro Channel, Myx, Cinemo, Jeepney TV, and Yey 2. Cable, Satellite, and Broadband – Sky Cable, Sky Broadband, Sky Direct, and Sky on Demand 3. Digital and Interactive Media –iWant,abscbn.com, YouTube, Facebook, and other digital and other social media platforms 2 4. Consumer Products and Experiences – merchandise and promotional licensing, and physical experience business
B. The company is exploring alternative means to reach its audience and substitute sources of revenues, such as but not limited to, expanding its digital platforms and developing new products.
C. The company will continue to implement cost control measures, reducing general administrative expenses (GAEX) or overhead and rationalizing capital expenditures.
D. The company is formulating measures to protect the welfare and interest of its employees. As of September 30, 2019, the Company’s long-term debts amounted to Php21.336B. In light of the Order, the creditor banks have been apprised and are aware of the company’s situation.
On May 7, 2020, the company filed with the Supreme Court a Petition for Certiorari and Prohibition (the “Petition”), with urgent application of the issuance of a Temporary Restraining Order and/or a Writ of Preliminary Injunction (G.R Case No. 352119). In the Petition, the Company sought relief from the Supreme Court, as follows: (i) issuance of a Temporary Restraining Order, (ii) the issuance of a Writ of Preliminary Injunction after proceedings held and while the Petition is pending; and (iii) after further proceedings, the annulment and setting aside of the Order and declaration of permanent injunction, against the implementation of the Order. The following basic arguments were put forth and extensively discussed in the Petition in support of its prayer: 1. Direct resort to the Supreme Court is necessary and justified given the urgency and transcendental importance of the subject matter, and the grave and irreparable repercussions on public interest brought about by the issuance of the Order; 2. There is no plain, speedy and adequate remedy available to ABS-CBN other than the Petition; 3. Congress has the plenary power.