NSC seeks new 30-day extension of deadline for revised rehab plan

Debt-strapped National Steel Corp. (NSC) is asking the Securities and Exchange Commission (SEC) for another 30-day extension or until April 27 to come up with a revised rehabilitation plan.

The interim receivers for NSC led by Monico V. Jacob and Antonio Arizabal said the extension is necessary since the receivers have just assumed their functions and are currently talking with creditor banks on how to rehabilitate the company, the inputs of which will be incorporated in the amended rehabilitation plan.

"The banks, the management and the interim receivers agreed that an extension of the period within which to submit the rehabilitation plan was necessary. Moreover, an extension will also help the receiver in appreciating the status of the corporation and preparing a rehabilitation plan since they just started to discharge their functions. It was also agreed that a visit to Iligan would be made on the 29th of March to better address the situation," Jacob and Arizabal said in a letter to the SEC. The third member of the receiver, former National Power Corporation president Guido Delgado is in New York.

The receivers said they met with the steering committee of creditor banks last week, including representatives from the Philippine National Bank, Land Bank of the Philippines, Global Bank and Credit Agricole.

It was agreed during the meeting to take steps to rehabilitate the company and to immediately preserve its assets to keep them from deteriorating. The banks also agreed to appoint a comptroller.

The receivers also met with the management of NSC to express the creditor banks' concern about maintaining the assets and equipment of the company.