Money

P27B debt: Aboitiz-led Union Bank most at risk among ABS-CBN’s creditors

Union Bank of the Philippines of the Aboitiz family is the most exposed among six financial institutions with a combined P27.06 billion to the former media giant.

Union Bank of the Philippines of the Aboitiz family is the most exposed among six financial institutions with a combined P27.06 billion to the former media giant.

Union Bank has a total of P11.35 billion exposure in ABS-CBN ahead of the Ayala-led Bank of the Philippine Islands (BPI) with P10.073 billion (including P873 million loan to Sky Cable).

Aboitiz, Ayala banks have combined P21.5B loan exposure to Lopez in off-air ABS-CBN

ABS-CBN accounts for 11.6 percent and 2.89 percent of Union Bank’s total equity and loans, respectively.

In contrast, ABS-CBN is just 3.92 percent of total equity and .74 percent of total loans of BPI.

The other lenders of ABS-CBN are BDO (P2.762 billion), Rizal Commercial Banking Corp. (P1 billion), Philamlife (P1 billion), and Security Bank (P873 million).

ABS-CBN, which had P20.73 billion in cash as of September 2019, assured that it would continue to settle its debts as scheduled (it spends P1.4 billion annually for interest payments). But it has yet to explain how with its revenue and cash sources drying up following the non-renewal of its franchise which expired last May 4. ABS-CBN’s broadcast operation is its cash cow with all of its other businesses losing money.

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