ABS-CBN’s defends PDRs before Congress

ABS-CBN’s legal counsel explained that ABS-CBN Holdings and ABS-CBN Broadcasting Corp. are two separate entities as the media network continues to seek its franchise renewal.

According to Atty. Cynthia del Castillo, ABS-CBN’s legal counsel, the issuance of Philippine Depositary Receipts or PDRs does not give ownership rights to foreign individuals.

Del Castillo further argued that the PDRs are listed under ABS-CBN Holdings which manages investments and not ABS-CBN Broadcasting Corp. wherein mass media falls under.

“PDRs are purely financial instruments. Hindi po siya shares. Hindi po siya nakakaboto sa ABS-CBN Broadcasting at hindi po siya nakaka-participate sa management ng ABS-CBN Broadcasting,” according to Del Castillo.

The PDRs were introduced in 1999 after the Asian Financial Crisis that happened in 1997. Del Castillo said that the PDRs were offered as it was convenient and beneficial to companies to raise capital without disposing ownership.

Rep. Edcel Lagman backed the statement of Del Castillo and foreigners in possession could not claim corporate ownership.

"A foreign PDR holder is not a part owner or even a small owner of ABS-CBN Broadcasting Corporation when compared to an ABS-CBN stockholder," Rep. Rufus Rodriguez also said in support.

 

The Supreme Court en banc will discuss the petition filed by ABS-CBN’s petition against the National Telecommunications Commission’s cease and desist order as said by Chief Justice Diosdado Peralta in a separate statement.

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