Allengoal clarifies EC meet

Allengoal Steel appealed yesterday for an accurate and full disclosure by the Evaluation Committee (EC) of what transpired at the National Steel Corp. (NSC) bidders’ meeting last week.

Allengoal lead counsel Celso de las Alas was reacting to EC reports in yesterday’s papers that "none of the parties, among them Allengoal, complied with the Terms of Reference (TOR) for the lease."

In the same reports, the EC also claimed that "all three proponents agreed to abide by the process set by the EC," referring to a call for detailed business and financial plans to be presented at another round of meetings on Nov. 26.

"The EC report of what transpired at the meeting on Nov. 8 does not fully reflect the issues we discussed," De las Alas said.

"First, Allengoal was the only bidder to make a lease offer: P20.5 million monthly rental, plus or in addition to 40 percent of net profits. Neither Capasco nor Voest Alpine (VA) had a rental offer.

"Second, Allengoal was the only bidder to put up a combined guarantee and performance bond of P100 million on the operation, maintenance and rehabilitation of the NSC Iligan facilities. Neither Capasco nor VA proposed any bond or guarantee on their bids.

"Third, the presentation of business and financial plans on Nov. 26 must be anchored on the offers brought to the bidders meeting on Nov. 8. The plans are simply an elaboration or enhancement of what is already made by way of a lease offer in the Oct. 25 bidding.

"Fourth, the objective of the whole EC exercise is rehabilitation and not liquidation. Therefore, a prejudicial issue questioning the liquidation order of the Securities and Exchange Commission (SEC) has to be settled. A key member of the EC, SEC-appointed liquidator Danilo Concepcion, is affected by this prejudicial issue.

"The foregoing, among others, clarifies the context for my client’s continued participation in the EC process," De las Alas said.

De las Alas also emphasized that the meeting on Nov. 8 was merely clarificatory and constitutes part of the ongoing bid process initiated on May 23.

At the meeting last week, Allengoal president Alexander Delmo told the committee his company participated in the process out of respect for President Arroyo’s desire to break the NSC impasse.

Actually, he said, he had already beaten all other lease offers in a bidding called by Trade Secretary Manuel Roxas II on May 23.