LOPEZ Holdings Corp., the holding company for the Lopez family’s media and power assets, has further reduced its debt at the end of last year. The company is also seeking to wipe out remaining deficits in line with a plan to pay dividends to shareholders starting this year.

At the sidelines of a special stockholders’ meeting on Monday, Lopez Holdings president Salvador Tirona said outstanding obligations at the end of last year amounted to $65 million from as much as $560 million eight years ago when the company declared a debt payment standstill.

Individual bondholders mostly hold the remaining debt, the company executive noted.

“We have always been open to restructuring or buyback. It’s up to the remaining debt holders whether they want to go along [with the company strategy],” Tirona said in response to a query on when the company expects to fully pay off its debt.

Lopez Holdings expects wipe out deficits that amounted to approximately P100 million at the end of 2010. This was reduced from as much as P6.88 billion before the Securities and Exchange Commission allowed the company to undergo an equity restructuring program late last year.  

“Hopefully with the first quarter results, we will be able see positive retained earnings,” Tirona noted.

The removal of the remaining deficit will allow the company to start paying out dividends to shareholders. Tirona declined to comment on the size and timing for dividend declaration, saying the company still needs to prepare its financial statements.

Lopez Holdings controls a 57-percent economic interest in ABS-CBN Corp. and 42 percent in First Philippine Holdings Corp.