The Bangko Sentral ng Pilipinas (BSP) is pursuing the recovery of ₱669.4 million from Prime Media Holdings Inc.—a company associated with former House Speaker Martin Romualdez—stemming from a decades-old financial contract that the firm is currently contesting.
According to a regulatory filing, Prime Media received a formal demand from the central bank in October 2025 regarding a Memorandum of Agreement signed on January 14, 1997. The contract was originally forged between the BSP, First Producers Holding Corporation, and PDCP Development Bank, which was Prime Media’s former corporate identity.
The 1997 deal established a 30-year deferred payment plan to cover roughly ₱1.37 billion in overdrafts and reserve penalties accumulated by First Producers.
It involved an escrow fund managed by the BSP to grow through government securities, with the bank agreeing to cover any remaining deficit once the timeline matured.
The agreement officially concluded on January 6, 2025, prompting the BSP’s subsequent collection demand. Prime Media, however, is challenging the claim.
“The matter is subject to the review of the BSP Monetary Board at the request of the Company and is currently under evaluation,” the company said in its disclosure.
Prime Media’s leadership has directed its legal team to dissect the central bank’s claim to map out its next moves.
“Based on available information and documents, the Management and legal counsels have assessed that the BSP’s demand should not be treated as a presently enforceable liability,” the company said.
The firm noted it still retains ₱601.6 million in real estate assets from its previous banking days, alongside ₱15.2 million in cash from asset liquidations.
Originally starting as the Private Development Corporation of the Philippines, the company morphed into PDCP Bank and First e-Bank before its banking operations were eventually absorbed by BDO Unibank via the Metro Pacific Group in 2002.
Currently, Prime Media operates primarily in media, famously partnering with ABS-CBN Corporation to run Media Serbisyo Production Corporation, the entity behind DZMM Radyo Patrol 630.