Two firms eye NSC anew

Two firms have reportedly expressed interest in the National Steel Corp. (NSC).

Ispat International, which had previously offered to take over NSC, is renewing its offer for the mothballed steel firm, while Sherman International Corp. has expressed interest only in acquiring some of NSC’s assets.

According to banking sources, the two firms have renewed interest in NSC following the debt restructuring agreement reached among the steel firm’s creditor-banks.

Ispat, which is based in the Netherlands is reportedly interested in acquiring all of NSC’s assets.

Sherman International, on the other hand, only wants to acquire only a portion of NSC’s production line.

In 1999, Ispat offered $100 million in fresh capital infusion into the ailing steel firm, while offering to repay $200 million to the creditor banks over a period of 20 years but at zero interest rate.

It was also hoping to do an international public offering for NSC.

However, Ispat eventually withdrew its offer due to funding difficulties.

The Department of Trade and Industry (DTI) is trying to convince the creditor-banks of NSC to get on with the restructuring and rehabilitation of NSC especially so it can entertain interested bidders to either take over or operate the mothballed steel firm.