The Lopez family majority has withdrawn its February 27 resolution removing Federico “Piki” Lopez as president and CEO of Lopez, Inc., opening the door for possible discussions among family members amidst the ongoing dispute over First Gen’s asset deals with Prime Infrastructure Capital Inc.

In a statement issued Thursday, May 14, the Lopez majority said the withdrawal creates “a window for discussions among the family members,” while the legal case regarding the lifting of an injunction remains pending before the Court of Appeals.

“The withdrawal presents an opportunity for the whole family to step back, re-consider their adversarial positions, and look for options that are least injurious to the family, the Lopez group, and the investing public,” the statement said.

The group also acknowledged the reputational impact of the public dispute and its implications for investors.

“Harm has been done to everybody. Reputational damage is there. Our family has been in a fishbowl with everybody looking in,” the statement read.

The Lopez majority added that it is open to a “ceasefire” if there is a reasonable expectation of a fair compromise and access to information, but warned it is prepared to intensify efforts to protect its “legal and pecuniary interests” if discussions fail.

The conflict traces back to the Lopez majority’s February 27 decision to remove Piki Lopez in a 5-2 board vote, citing loss of trust and confidence related to First Gen’s approximately PHP 125-billion transactions with Prime Infrastructure.

Over the past month, the dispute has escalated through a series of public statements involving alleged “poison pill” provisions, “key man” clauses, discounted valuation risks, investor exposure concerns, and potential cross-default loan provisions tied to leadership changes.

The Lopez majority has alleged that the agreements could expose the Lopez group and First Gen shareholders to up to PHP 24 billion in penalties and other financial risks if Piki Lopez were removed from his position.

Previous statements from the group also raised concerns about possible implications for institutional investors and financing arrangements connected to the transactions.

The Lopez majority reiterated Thursday that the agreements involved “undeserved financial penalties especially for the investing public.”

While the withdrawal of the removal resolution may signal a temporary easing of tensions, the broader governance, financial, and disclosure issues surrounding the transactions remain unresolved.

The dispute continues to draw attention from the energy sector and financial markets due to First Gen’s major role in the country’s power industry and the scale of the transactions involved.

Earlier this week, Lopez Holdings Corporation disclosed that chairman Federico R. Lopez filed an indirect contempt case against several directors and officers of Lopez, Inc. over alleged violations of a court-issued temporary restraining order tied to an ongoing leadership dispute within the Lopez group.  

As the Lopez family dispute enters a possible negotiation phase, will the temporary easing of tensions lead to a broader resolution over the governance and financial concerns tied to the First Gen-Prime Infra transactions?

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