{"id":329028,"date":"2024-08-18T23:44:07","date_gmt":"2024-08-18T15:44:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329028"},"modified":"2024-08-18T23:50:14","modified_gmt":"2024-08-18T15:50:14","slug":"trade-the-news-abs-cbn-actively-negotiating-with-banks-for-loan-extension-to-end-2024","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-abs-cbn-actively-negotiating-with-banks-for-loan-extension-to-end-2024\/","title":{"rendered":"Trade the News: ABS-CBN actively negotiating with banks for loan extension to end-2024"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>ABS-CBN Corp.<\/td><\/tr>
Stock Code<\/strong><\/td>ABS<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 5.44<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

ABS-CBN Corp. (ABS) is actively negotiating with banks to extend a loan agreement deadline to the end of 2024. Led by president and CEO Carlo Katigbak, the media giant is also working on raising cash through asset sales to meet its financial obligations while steadily reducing its losses through earnings from content production and advertising revenues, its latest financial filing showed.<\/p>\n\n\n\n

\u201cAs of August 15, 2024, the parent company\u2019s discussions with the banks on the further extension of the long stop date until Dec. 30, 2024 is ongoing,\u201d ABS-CBN said on Wednesday.<\/p>\n\n\n\n

\u201cOngoing discussions with its lenders include, but not limited to, the waiver of financial ratios for 2024, extension of long-stop date, and possible options for the early settlement of the loan through sale of certain assets,\u201d it added.<\/p>\n\n\n\n

ABS-CBN confident in settling debts<\/strong><\/p>\n\n\n\n

Based on the filing, ABS-CBN\u2019s loans amounted to P11.93 billion, while SkyCable has P4.5 billion in bank debts. Total bank loans amounted to P16.43 billion, which was lower by 4.4 percent compared to the end of 2023.<\/p>\n\n\n\n

\u201cManagement assessed that the group will be able to maintain its positive cash position and settle its liabilities as they fall due within 12 months from the end of the reporting period,\u201d ABS-CBN said in the filing.<\/p>\n\n\n\n

Loan deadline extension<\/strong><\/p>\n\n\n\n

Due to heavy business losses, ABS-CBN risked default in 2020 when President Duterte\u2019s allies in Congress killed the company\u2019s broadcast franchise. To address this, the company entered into an agreement with lenders. This deal expired at the end of 2023, prompting ongoing talks for an extension. <\/p>\n\n\n\n

In its filing, ABS-CBN said losses during the first six months of the year narrowed by 5 percent to P2.1 billion, even as revenues dipped 11 percent to P7.8 billion. The revenue decline was mainly due to lower licensing deals while advertising earnings increased.<\/p>\n\n\n\n

(News Source: InsiderPH<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-329028","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=329028"}],"version-history":[{"count":3,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329028\/revisions"}],"predecessor-version":[{"id":329037,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329028\/revisions\/329037"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=329028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=329028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=329028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}