Securities and Exchange Commission chairperson Lilia Bautista said that aside from the pending lease proposal from Allengoal Steel Fabrication and Trading, two more companies – Cathay Pacific Steel Co. (Capasco) and the Swiss-based Glencor – have submitted their respective lease bids to NSC liquidator former SEC commissioner Danilo Concepcion.
Bautista said the liquidator will meet with the Department of Trade and Industry (DTI), which has extended its help in facilitating the re-opening of Southeast Asia’s largest producer of semi-processed steel to evaluate the three proposals.
The Commission has approved last year the liquidation of NSC’s P28-billion worth of assets to settle outstanding claims of about P16 billion mainly from a consortium of bank creditors.
The liquidation program followed a series of failed bids and negotiations, primarily on the side of NSC’s majority owners Hottick Investments Ltd. of Malaysia, in finding a "white knight" that would infuse fresh funding to jumpstart the company’s rehabilitation.
The SEC is presently studying the merits of the lease offer that has been submitted by local steel company Allengoal as a possible means to maximize the use of NSC’s assets at its Iligan City plant and prevent the asset liquidation.
Based on Allengoal’s least-to-operate-and-maintain proposal submitted to NSC’s liquidator last January, Allengoal will restore, rehabilitate and maintain the Iligan plant facilities to operational readiness at no immediate cost to NSC.
Allengoal officials said should an agreement from a long-term buyer to buy out NSC be forged, the company would be agreeable to a mutual pre-termination of the lease contract, subject to the full refund of the cost of rehabilitation, restoration and maintenance.
Allengoal is proposing a two-year renewable contract wherein it would be paying a monthly lease of P17.8 million for the operation of the hot mill, cold mill, electrolytic tinning line, billet, steelmaking plant and related facilities. – Conrado Diaz Jr.