ABS-CBN Corp. reported that a standstill with its current lenders has been reached on Thursday.
‘The existing lenders of the company agree to make its standstill agreement with the company effective now that the lender is in compliance with the condition of creation of a mortgage and security interest in certain assets of the company and that the company shall not declare default or exercise any right or remedy under existing credit agreements.’
The firm stated the standstill agreement is effective on 31 May.
In July of last year, the media firm indicated that it was discussing its long term obligations with its creditors banks.
In spite of the effects of the non-renewal of its broadcasting franchise on overall business, ABS-CBN was optimistic that it would be able to meet its financial commitments.
By vote 70 to 11, a request for the franchise renewal of ABS-CBN, a media corporation critical of PresidentRodrigo R. Duterte, was denied by the House of Representatives Committee on Legislative Franchises and said broadcaster “undeserving” the prerogative of the vote.
The corporation has implemented cost-cutting initiatives, including a simplification of investment and employee demands.
The Council stated it will follow all “possible remedies” while fulfilling relevant legal obligations “so as not necessarily include broadcasting but to be able to preserve its present and future commercial activities.”
The Bankers Association has also said last year, with the non-renewal of the ABS-CBN broadcasting franchise, that banks are competent to manage their loan portfolio.