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Philippines·Trade & Economy

Philippines: Lopez family feud exposes loan default risk tied to First Gen CEO's tenure

Friday, 17 April 2026, 10:12 · 1 min read

A bitter ownership dispute within the Philippines' prominent Lopez family has taken a financial dimension, with First Gen Corporation warning that removing its CEO Federico "Piki" Lopez could trigger loan defaults. The country's largest bank, BDO Unibank (part of the Sy family's SM Group), has issued standby letters of credit worth a combined ₱24.75 billion tied to First Gen's acquisition of a stake in hydropower projects, with terms stipulating that a change in management control would constitute an event of default across loans held by the wider First Philippine Holdings group. The disclosure deepens an intra-family conflict in which Piki Lopez's cousins, led by former media executive Eugenio "Gabby" Lopez III, have been seeking to oust him from leadership — a move now complicated by contractual protections embedded in deals with both BDO Unibank and billionaire Enrique Razon's Prime Infrastructure Capital.

Sources
RapplerLopez cousins’ feud: ‘Poison pill’ protecting Piki also in select BDO loans ↗︎
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