Hottick threatens to drive OFWs out of Malaysia

Hottick Investment Ltd., the Malaysian majority shareholder of the cash-trapped National Steel Corp. (NSC), has threatened to drive overseas Filipino workers (OFWs) out of Malaysia in a bid to stop the liquidation of the firm.

Securities and Exchange Commission (SEC) Chairman Lilia Bautista said Hottick appears to be determined to exhaust all means available to stop the agency from carrying out its liquidation plan.

Bautista ordered the liquidation of the steel firm two weeks ago. The SEC-appointed interim receivers ship committee (IRC) headed by Monico Jacob has been ordered to submit a liquidation plan in 60 days.

Hottick told Bautista recently that it was negotiating with interested investors willing to bail the steel firm out of bankruptcy.

However, Bautista said the liquidation order has been in accordance with what the law dictates if the IRC cannot find a white knights strong enough to save the company.

Six investors led by an Arab-Chinese group have expressed interest in buying NSC. Most of them seen undaunted by the steel firm’s liabilities now estimated at around P16 billion, according to Bautista.

In a related development, disgruntled workers belonging to the National Steel Labor-FFW led by its president Simplicio Villarta Jr. expressed concern that "if NSC would be sold at a price less than its outstanding debts the workers claim will be truly jeopardized."

The NSC employees further claimed that although Jacob has informed them that foreign investors are willing to buy the steel firm, he is not sure if there is indeed money in the liquidation of it. "Hence, payment of separation pay claims would also be uncertain," Villarta said.

"The labor’s foremost concern, that is, the payment of their separation pay, and while waiting for such payment, the plant should be allowed to be operated by any interested investor, local or foreign, for the workers to earn for their daily sustenance and other basic needs," Villarta added.