Hottick opts to remain in evaluation committee for rehabilitation of NSC

Hottick Investment Ltd., National Steel Corp.’s majority shareholder, will remain with the NSC evaluation committee, paving the way for the rehabilitation of the NSC plant in Iligan, Trade and Industry Secretary Manuel Roxas II disclosed yesterday.

Earlier, Hottick announced that it was dropping out of its earlier commitment to enter into a common evaluation process with the government.

Roxas said he received formal word from Danaharta, the Malaysian debt rehabilitation agency, that Hottick is not leaving the evaluation committee.

"True to its commitment to support the evaluation committee process, Danaharta instructed Hottick to stay in the committee and again name a representative to the panel at the soonest possible time," Roxas said.

Hottick’s withdrawal will invalidate the effort of the evaluation committee to review and possibly decide on the best lease proposal for the resumption of operation of the beleaguered steel firm.

With Hottick staying on in the evaluation committee, Roxas said the body is expected to reconvene next week and start the process of receiving proposals from prospective investors.

At the same time, Roxas said, "we have also now been informed that the Malaysian lenders to Hottick are considering appointing their own representatives to the evaluation committee who will sit as observer."

Among the Malaysian creditor-banks are Bank Bumiputra, Malayan Banking, RHB Bank and Commerce Assetholding Bhd.

"These developments further strengthen our resolve to work in the evaluation committee with the Securities and Exchange Commission (SEC)/liquidator, the creditor banks, and the other participants in seeking a litigation-free solution to the NSC situation," Roxas said.