Sumber: http://www.philstar.com/philstar/News073838.htm

(Philippines)

Malaysians move to save NSC

by :Conrado M. Diaz Jr. 9/16/00

One day after the interim rehabilitation receivers of debt-burdened National Steel Corp. (NSC) announced that they would propose the liquidation of the company, the Malaysian owners of NSC asked the Securities and Exchange Commission (SEC) yesterday for an extension in the moratorium on the firm's debt payments, reasoning out that they are working on an alternative rehabilitation plan that would bring in two potential investors.

In a letter to SEC Chairperson Lilia Bautista, Hottick Investment Ltd. chairman Abdul Rashid Bin Abdul Manaff said they are currently "working out the plan for the rehabilitation of NSC with two potential investors."

The SEC's debt suspension order expired yesterday.

"At the same time, we are also organizing for the installation of a working board and management committee for NSC to facilitate the operations of NSC and finalization of the rehabilitation plan," he said.

Although he did not specify how long they wanted the extension period to be, SEC sources said the Commission might be open for a two-week grace period.

Earlier, the receivers asked for a two-week extension to map out a plan to liquidate NSC following the objection posed by Hottick, through its share assignee Perungusan Danaharta Bhd., on the rehabilitation plan submitted by the IRR.

Hottick owns a controlling 82.5-percent stake in the country's biggest maker of semi-finished steel products. Its former owner, the Philippine government, still has a 12.5-percent equity remaining in NSC, with the five-percent balance accounted for by its technical partner Mitsubishi Corp. of Japan.

Abdul Manaff's short letter did not elaborate on how it plans to bring the two investors with their proposed rehabilitation plan.

NSC has outstanding loans of over P16 billion owed to several creditors that include domestic banks and foreign financial institutions. With a bleeding cash flow, NSC was forced to close down its plant in Iligan last November and was given debt relief by the SEC which also placed it under receivership.

The IRR said the Malaysians' objection to the rehabilitation plan had left them with no other choice but to recommend the liquidation of over P29 billion in NSC assets.