On July 20, 2007, Quezon City Regional Trial Court Branch 81 Presiding Judge Ma. Theresa Yadao dismissed Locsin's petition for reformation of instrument and/or rescission/breach of contract and damages filed against Rebecca "Becky" Aguila after granting her motion to dismiss, based on settlement of their differences. Locsin sued her manager on December 6 where she asked the court to order the reformation of the terms of the Artist Management Contract which she had signed, to reflect the true intention of the parties.[1]

Angel's five-year contract with GMA expired in mid-2007. Her manager, Becky Aguila, and her father, Angel Colmenares, sent a letter, formally informing GMA that her talent would not renew her contract with the Kapuso network.[2] In August 2007, she transferred to ABS-CBN Network, the rival TV station of GMA.[3] She told in an interview with Boy Abunda that she is no longer happy in GMA and she is looking forward to having a better career in ABS-CBN.

GMA's Senior Vice-President for Entertainment, Wilma Galvante, expressed her disappointment with Angel's career move. In a phone patch interview with Showbiz Central, Galvante said that they were the last to know about Angel and her manager's intentions. Galvante said that they had asked Angel Locsin twice if her camp was negotiating with the rival network, and Locsin and her Manager repeatedly denied there was a negotiation going on. The GMA Executive further expressed disappointment that they were only informed of the impending transfer, through a letter from Becky Aguila, a few hours before Aguila and Locsin's father discussed the transfer on an interview with one of the shows of ABS-CBN.[4]