Despite bleeding financially, ABS-CBN continues to be in the service of its audience by creating fresh content and programs.
For more than a year now, ABS-CBN did not let go of providing new programs even without a franchise to operate a free TV broadcast.
Recently, the embattled media company reached a deal with its lenders for a loan reprieve, which will prevent the company from defaulting on its loans.
The loans are to refinance their other existing loans and to fund their projects and other businesses.
In a disclosure report to the Philippine Stocks Exchange, ABS-CBN said their current lenders have agreed to a standstill agreement for their loans amounting to more than 27 billion pesos.
“The existing lenders of the company today agreed to make its standstill agreement with the company effective, i.e., not to declare an event of default or to exercise any rights or remedies under existing loan agreements, after compliance by the company with the lenders’ condition of the creation of a mortgage and security interest over certain assets of the company.”
Currently, the Network has a total of P27.06 billion worth of loans to six banks, which include Union Bank of the Philippines (P11.35 billion), Bank of the Philippine Islands (P10.073 billion), BDO Unibank (P2.762 billion), Rizal Commercial Banking Corp. (P1 billion), Philamlife (P1 billion), and Security Bank (P873 million).
ABS-CBN is bleeding financially after its shutdown in May 2020 following the cease-and-desist order from the NTC and the subsequent denial of their franchise application by the 70-strong, Cayetano-led congressmen in July 2020.
According to its latest financial report, ABS-CBN reported a loss of 7.3 billion for the first nine months of 2020.
The Kapamilya network’s revenue meanwhile dropped by almost 50% at 17.03 billion.
The major contributor to it is their 65.8% drop in advertising sales to 5.85 billion and 25% slash on their consumer sales to 11.8 billion.