Groups enter pact to hasten NSC rehab

A formal agreement has finally been reached among all parties concerned with the National Steel Corp. (NSC) to enter into a "common evaluation process " to speed up the rehabilitation of the steel firm, Trade Secretary Manuel Roxas II said yesterday.

Following a meeting last Friday among representatives of major creditors/stakeholders of NSC, Roxas said an evaluation committee was created which would draw up proposals from strategic investors interested in operating the Iligan facilities of NSC.

Roxas will lead the evaluation committee, while members include NSC liquidator Danilo Concepcion; Hottick Investment Ltd. representative Ibrahim Bidin; National Development Co. general manager Ofelia V. Bulaong; and representatives from the creditor banks as well as the Securities and Exchange Commission.

Submission of proposals are expected to be received by Sept. 30 this year.

Interested parties may offer a broad range of proposals which include the duration of lease for the Iligan facilities of the steel firm.

In addition, the committee drew up terms on the financial and technical capability and marketing prospects of interested strategic investors.

In terms of financial capability, interested parties must have adequate capital structure, including proof of financial resources based on past performance, while in terms of technical capability, the firm must possess technical know-how with proven track record in the steel business.

The interested party must also have the capability to protect both plant and property from damage.

According to Roxas, the NSC evaluation committee will receive, canvass and evaluate all possible interim operating proposals.

He stressed, however, that the committee is not accepting bids.

"What we are soliciting and receiving are proposals for operating the plant while the creditors and the Malaysians sort out issues on ownership and liquidation," Roxas said, adding that "with this agreement we have an opportunity to see the light at the end of the tunnel.

He said the agreement is non-binding but is more consensus building. "The agreement was designed by the DTI so as to preserve the legal position of all the parties."