Danaharta can’t oppose NSC sale to Global — creditors

The Malaysian holding firm Pengurusan Danaharta Nasional Berhad (Danaharta) has no right to vote against the sale of the National Steel Corp. (NSC).

This was the position of the creditor banks of NSC after Danaharta expressed its disapproval of the sale of the troubled steel firm to Global Infrastructure Holdings Ltd. (Global Infrastructure).

In a press briefing Monday night, Landbank of the Philippines (LBP) first vice president Cecilia C. Borromeo said that Danaharta could only exercise its right to refuse the transaction if the offer was less than 80 percent of the net assessed value of the company, based on an earlier memorandum of agreement (MOA) signed between the local creditor banks and Danaharta in November 2002.

"We feel that they can not exercise their right to refuse," Borromeo said.

Global Infrastructure and NSC’s creditor banks inked a deal for the sale of the steel firm worth P13 billion.

"The amount is above 80 percent of NSC’s net present value so Danaharta cannot exercise its right to veto the sale," Borromeo added.

Creditor banks, however, remain hopeful that Danaharta will not bring the case to court as it would only jeopardize the rehabilitation of the NSC.

GIHL, Borromeo said, has so far infused P50 million in rehabilitating the steel plant and has already employed about 500 workers.