TV5’s termination of its partnership with ABS-CBN over a ₱1 billion payment demand exposes deep financial cracks. With ₱13 billion in payables and cash reserves down to ₱718 million, the Lopez Group must act fast—using its ₱50 billion windfall from First Gen’s sale to Enrique Razon—to prevent a collapse that could damage its entire credit reputation.

When TV5, backed by the Manny Pangilinan group, pulled the plug on its partnership with ABS-CBN and demanded a ₱1 billion payment, it wasn’t just a broken deal—it was a warning shot. A signal that the financial cracks in ABS-CBN are widening, and the tremors could shake the entire Lopez Group.

The numbers are stark: ABS-CBN’s SEC filing shows ₱13 billion in trade and other payables, a ₱11 billion working capital deficit, and cash reserves down to ₱718 million. These aren’t minor hiccups—they’re existential threats. When a major partner like TV5 walks away over unpaid obligations, others will take notice. Talent agencies, event venues, content licensors—they could all demand immediate settlement. If that domino effect begins, ABS-CBN’s operational lifeline could snap.

Here’s the irony: the Lopez Group is sitting on a ₱50 billion windfall from the sale of its natural gas assets under First Gen Corp. to Enrique Razon’s Prime Infra. That deal was hailed as a strategic pivot to renewables. But what good is a green future if the flagship media arm collapses today? Deploying even a fraction of that windfall—₱10 to ₱15 billion—could stabilize ABS-CBN, clear critical payables, and restore partner confidence.

And here’s the urgency: declare a portion of that windfall as dividends to First Philippine Holdings (FPH). Why? So FPH can acquire ABS-CBN outright and inject fresh capital to fix its battered finances. This isn’t just about saving a network—it’s about protecting the Lopez Group’s credit reputation. Letting ABS-CBN be hounded by creditors, suppliers, and banks will tarnish the group’s standing in the financial community. For a conglomerate that relies heavily on bank financing for power and infrastructure projects, that’s a risk too costly to ignore.

This is no longer about pride or politics. It’s about survival. The Lopez Group must act decisively. Upstream the funds. Shore up ABS-CBN’s balance sheet. Send a message to partners and creditors: we pay our bills, we honor our commitments, and we protect our brands.

Because in business, perception is reality. And right now, reality is screaming for leadership.

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