NSC gets until April 17 to submit rehab plan

The Securities and Exchange Commission (SEC) has turned down the appeal of debt-strapped National Steel Corp. (NSC) to have until the end of the month to submit its revised rehabilitation plan.

Instead, the SEC ordered the Mindanao-based steel firm to submit by April 17, its amended rehabilitation plan that will detail its strategy to reverse the financial losses of the company.

The interim receivers for NSC led by Monico V. Jacob and Antonio Arizabal wanted the extension since they had just assumed their posts and are still negotiating with creditor banks on how to rehabilitate the company, the inputs of which will be incorporated in the amended rehabilitation plan.

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

It was agreed that steps will be taken to revive the company and to immediately preserve its assets to keep these from deteriorating. The banks also agreed to appoint a comptrollers.

The receivers also met with NSC management to express the creditors concerns about maintaining the assets and equipment of the company.

The NSC's rehabilitation plan will hinge largely on finding investors willing to pump fresh money into the company to be used immediately to buy raw materials needed to resume steel production.

Recently, a group of investors led by Grupo F. Jacinto (GFJ) which has the financial muscle to put up an initial cash infusion of $40-$50 million in exchange for an equity of 51 percent in the steel firm expressed interest in NSC.

NSC added it is also talking to European steel firm, Duferco S.A. of Switzerland, said to be the largest independent trading firm in the world and also the biggest trader of slabs.

Together with its extensive trading operations, Duferco S.A. is becoming a major producer of steel finished products in the world, currently producing five million metric tons.

NSC said that Duferco S.A has tied up with Novolipetsk Metallurgical Kombinat (NLMK), a major slabs producer in Russia, with their plan to rehabilitate the Iligan-based steel company.