ABS-CBN Receives P2 Billion of P6-Billion Rescue Package Amid Ongoing Recapitalization

MANILA, Philippines – ABS-CBN Corporation has secured P2 billion from investors as part of its larger P6-billion rescue package, according to recently disclosed transaction documents. This infusion provides the financially struggling media company with immediate capital while the full recapitalization process continues to navigate regulatory approvals.

The P2 billion received is not an additional investment beyond the P6-billion package announced on August 13 but forms part of the equity injection led by former chairman Eugenio “Gabby” Lopez III. Of this amount, P1.5 billion came from private investment firm I&C Holdings Corp., which has committed a total of P3.5 billion. Lopez family investment firms Crème Investment Corporation and Mantes Corporation each contributed P100 million toward their combined P766.67-million subscriptions, while Lopez Inc. paid its entire P300-million subscription. No advance payment was reported for Presta Holdings Company Inc., another Lopez family entity committed to P666.67 million.

These payments indicate that at least one-third of the P6-billion rescue package had been received by ABS-CBN as of the August 12 agreements. However, the company still requires approval to increase its authorized capital stock from P1.5 billion to P4.5 billion. This increase is necessary to create sufficient shares for investors subscribing to approximately 1.64 billion new common shares priced at P3.65 each. A stockholders’ vote on this matter is scheduled for September 30, followed by the need for Securities and Exchange Commission (SEC) approval.

ABS-CBN aims to secure SEC approvals by early November, with the transaction expected to close roughly six to eight weeks after filing, although these timelines remain subject to change. This phased approach reflects the complexity of the recapitalization and the regulatory environment.

The recent disclosures shed light on how the P6 billion will be allocated between stabilizing ABS-CBN’s financial position and investing in its future operations. The company stated that the proceeds may be used for working capital, settling past-due liabilities, reducing outstanding bank debt, and other general corporate purposes. I&C Holdings’ term sheet specifically designates its P3.5-billion investment for working capital. However, ABS-CBN has not detailed how the remaining P2.5 billion will be distributed among these needs.

Financially, ABS-CBN continues to face challenges. Content production and distribution generated about 84% of the company’s P6.88-billion revenue in the first half of 2026, an increase from approximately 77% a year earlier. Despite this shift toward content, the company’s net loss more than doubled to P1.83 billion, driven by a revenue decline of roughly P1.4 billion that outpaced cost reductions of P482 million.

This indicates that while ABS-CBN has largely transitioned away from traditional broadcasting, its content-led business model has yet to consistently generate profits. Nonetheless, there are encouraging signs beneath the headline losses. Excluding political advertising and other one-time items, ABS-CBN reported a 2% improvement in recurring EBITDA within its content business and a 1% narrowing of its recurring net loss.

The capital infusion led by the Lopez family and private investors is critical for ABS-CBN as it seeks to stabilize its finances and pursue a sustainable content-driven media and entertainment strategy. The coming months will be pivotal as the company works to finalize the recapitalization and demonstrate the viability of its evolving business model.