One of the main reasons, according to Mexican paper La Opinion, is the "precarious situation" prevailing in the country, referring to the failed coup attempt and President Arroyo’s declaration of the national state of emergency, which has already been lifted.
"The Larios-Pacquiao fight is 99 percent off because HBO does not want to risk to travel and work under unstable condition," said Larios’ handler Rafael Mendoza as quoted by La Opinion.
The report added that HBO will come up with an official statement in the next few days whether or not to stage the fight, originally set May 20 at the Araneta Coliseum, or not.
Los Angeles lawyer Nick Khan, an associate of Pacquiao in his US management team composed of Shelly Finkel and Keith Davidson, is expected to brief the HBO bigwigs on the current situation here after he personally checked things out last week.
In fact, Khan said he was impressed with the venue and vowed to tell the HBO officials that everything has normalized here. He even took pictures and videos of Manila scenes to show to HBO people.
"Although anything can happen in boxing, HBO has decided that it will not transmit the fight under such uncertain working condition," said Mendoza.
He added that Pacquiao has said that it does not matter to him if HBO does not want to travel (to the Philippines), saying he (Pacquiao) has already arranged the fight in June or July without HBO.
"But to us, it (HBO) is very important because Larios needs the exposure. Besides the market would no longer be the same without HBO," added Mendoza.
Nevertheless, Mendoza said that if the Larios-Pacquiao fight will be called off, his ward would instead take on Israel Vázquez in a fourth confrontation between the two Aztec warriors.
Over the weekend, Pacquiao sealed a deal with local giant network ABS-CBN for the staging of his fight against the former WBC super bantamweight champion tentatively set July 2 at the Big Dome. Other dates being considered are June 18 and June 25.
ABS-CBN acquired the global TV rights for the fight and is looking for a pay-per-view tie-up that will mean staging the match in Manila in the morning to be aired live on prime nighttime in the US.
A source said ABS-CBN has put up a "substantial" amount for the TV rights. Pacquiao will use the sum to finance a six-fight card, which he will personally promote.
Pacquiao will reportedly get $1 million for the fight, the second biggest boxing fight to be staged at the Big Dome after the classic Ali-Frazier clash in 1975.
The boxing card will be headlined by the Pacquiao-Larios 10-round main event. There will be another 10-rounder, two eight-rounders and two four-rounders.