The Lopez family majority has raised fresh concerns over governance and financial risk within First Philippine Holdings (FPH), warning that key subsidiaries could be pushed into default if leadership changes occur at First Gen Corporation.

In a statement issued May 6, the group said Energy Development Corporation (EDC), First Balfour, and First Gen “would be in default if Federico ‘Piki’ Lopez, FPH chairman and CEO, is removed from First Gen,” citing provisions embedded in recent financing arrangements.

The default provision is linked to a PHP 25-billion standby letter of credit secured by FPH from BDO Unibank. The facility was used to support First Gen’s PHP 62-billion investment in the hydropower assets of Prime Infrastructure Capital Inc.

The Lopez majority described the provision as the “third poison pill” they have uncovered, framing it as a structural risk tied to leadership continuity rather than corporate protection.

“He has in effect threatened to torch the very house that sheltered him all these years. In fact, his family branch which owns 29% of the Lopez group, would also lose billions, all for one reason: Piki must not lose his job”, the Lopez majority said in the statement, as relayed by legal counsel.

The group warned that a default event would trigger immediate financial consequences, including the need to settle loans outright or face penalty rates, potentially constraining operations and limiting access to future financing.

The Lopez majority said it was neither consulted nor informed about these investments and credit arrangements, adding that attempts to obtain further documentation from Federico Lopez have so far been unsuccessful.

The statement builds on earlier concerns flagged by the group over asset-linked “poison pill” provisions tied to transactions with Prime Infrastructure. The group earlier said the provisions would allow Prime to acquire First Gen’s stakes in its gas and hydropower ventures—valued at around PHP 112 billion—at a 25% discount, potentially resulting in losses of about PHP 24 billion if triggered.

The statement was attributed to the Lopez family majority through its legal counsel, Atty. Juman Paa.

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