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ABS-CBN exhausting ’all remedies' on franchise, shifting focus to growth areas

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2020/business/07/23/20200505-abs-shutdown-fsj.jpg"/><figcaption>ABS-CBN displays its iconic blue, green and red solors on the day it was shut down, May 5, 2020. <em>Fernando G. Sepe Jr., ABS-CBN News/File</em></figcaption></figure></div><h3>ABS-CBN reviewing current business models for a “more agile, efficient and effective organization”</h3><p>MANILA -- ABS-CBN Corp on Thursday said it will continue to explore &quot;all available remedies&quot; and &quot;courses of action&quot; while focusing on its other businesses to drive growth moving forward.</p><p>&quot;The denial of the franchise application of ABS-CBN to construct, install, establish, operate, and maintain radio and television broadcasting stations in the Philippines does not affect the primary franchise of ABS-CBN to exist as a corporation and does not affect the rights of its shareholders,&quot; the company said in a disclosure to the stock exchange.</p><p>The House of Representatives legislative franchises committee recently voted to deny ABS-CBN&#x27;s bid for a fresh 25-year franchise, while the National Telecommunications Commission ordered the company to stop its digital terrestrial TV network, resulting in massive retrenchments and job loss for thousands of Filipinos. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/07/10/20/house-committee-denies-abs-cbn-a-new-franchise">House committee denies ABS-CBN a new franchise</a></li>	<li><a href="https://news.abs-cbn.com/news/07/10/20/read-house-committee-resolution-denying-the-franchise-application-of-abs-cbn">READ: House committee resolution denying the franchise application of ABS-CBN</a></li></ul><p>The franchise denial affected the company&#x27;s free-to-air advertising business, which accounts for 50 percent of consolidated revenues as of end-September last year.</p><p>The company said to mitigate the impact of the franchise denial and the pandemic, it will focus on its other businesses that do not require a legislative franchise - among them, international licensing and distribution, digital and cable businesses, and content syndication through various streaming services.</p><blockquote class="embedly-card"><h4><a href="http://sa.kapamilya.com/absnews/abscbnnews/media/2020/business/07/23/pse-request-for-comprehensive-disclosure-on-denial-of-legislative-franchise-7-22-20.pdf">null</a></h4><p>null</p></blockquote><script async="" src="//cdn.embedly.com/widgets/platform.js" charSet="UTF-8" type="text/javascript"></script><p>It also implemented group-wide cost control measures, rationalizing capital expenditures and streamlining manpower.</p><p>&quot;Given the reduced operations, the Company is reviewing its current business models, structures, processes and systems, for a more agile, efficient and effective organization,&quot; it said while lessening investments on non-core activities to preserve cash.</p><p>ABS-CBN said it was also &quot;not aware&quot; of any material contracts, claims or demands, as it is currently in talks with creditor banks on its long term obligations. </p><p>&quot;The Company is likewise confident that any payments or financial obligations that may arise under its customary or usual business agreements are manageable and will not have a material adverse impact on ABS-CBN at this time. The Company is committed to honor all existing obligations for goods delivered and services rendered by its third party suppliers and/or to negotiate new terms for these obligations, should it be necessary,&quot; it added.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/07/22/20/makabayan-bloc-seeks-full-house-vote-on-abs-cbn-franchise">Makabayan bloc seeks full House vote on ABS-CBN franchise</a></li>	<li><a href="https://news.abs-cbn.com/news/07/11/20/sws-3-out-of-4-filipinos-say-congress-should-renew-abs-cbn-franchise">SWS: 3 out of 4 Filipinos say Congress should renew ABS-CBN franchise</a></li></ul><div><em>news.abs-cbn.com is the official news website of ABS-CBN Corp.</em></div>

<p>ABS-CBN Corp on Thursday said it will continue to explore "all available remedies" and "courses of action" while focusing on its other businesses to drive growth moving forward.<br /> </p>

ABS-CBN Corp on Thursday said it will continue to explore "all available remedies" and "courses of action" while focusing on its other businesses to drive growth moving forward.