SEC set to issue guidelines on rebidding of National Steel

The Securities and Exchange Commission (SEC) is set to issue today the guidelines on the planned rebidding of National Steel Corp. even as three pending lease proposals are being evaluated by the government.

An SEC official said the bidding for the assets of NSC, anchored on its Iligan City plant, would be more feasible if the government comes to terms with a lease proponent, who will then enhance and add value and attractiveness to the steel company.

The official said in the meantime, the ongoing liquidation of certain NSC assets have been suspended. The SEC approved last year the liquidation of NSC’s P28-billion worth of assets to settle outstanding claims of about P16 billion mainly from a consortium of bank creditors.

The liquidation program followed a series of failed bids and negotiations, primarily on the side of NSC’s majority owners Hottick Investments Ltd. of Malaysia, in finding a "white knight" that would infuse fresh funding to jumpstart the company’s rehabilitation.

Last month, three companies offered to operate the manufacturing facilities of National Steel Corp., under lease agreements to further boost the steel firm’s chances of re-opening after over a year of closing shop.

Aside from the original lease proponent, Allengoal Steel Fabrication & Trading, the battle to lease out NSC’s facilities has attracted Cathay Pacific Steel Corp. and Glencore Far East Philippines AG of Switzerland.

The three submitted separate lease proposals to NSC-designated liquidator, former SEC commissioner Danilo Concepcion, who will evaluate, along with the Department of Trade and Industry, these offers.

The SEC is studying the merits of the lease offers that have been submitted as a possible means to maximize the use of NSC’s assets at its Iligan City plant. – Conrado Diaz Jr.