Trade and Industry Secretary Manuel Roxas II said yesterday the Malaysian owners of NSC and the Philippine creditor banks are still working out the final details of the proposed debt write-down and equity conversion.
"Once an agreement is reached on the debt write-down and equity conversion, the owners of NSC will still have to operate the mill," Roxas said, "adding that the proposed lease-operate offers of Voest Alpine, Capasco and Allengoal can still be on the table although it would have to be updated."
Under the debt write-down and equity conversion proposal, all of the creditor banks and the Malaysian owners will have to agree to a "haircut." They will also have to agree to convert part of their outstanding receivables from NSC into equity.
The agreement of the Malaysian owners is crucial as it would mean a dilution of their ownership in the steel firm.
Industry observers said " if the Malaysian owners and the Philippine creditor banks fail to agree on the debt write-down and equity conversion, they will be back to square one and a messy legal battle for foreclosure of the assets of the NSC may ensue." – Marianne Go