Allengoal pushes lease with Nat’l Steel

Allengoal Steel Fabrication & Trading asked yesterday the Securities and Exchange Commission (SEC) for the immediate implementation of its lease agreement with the National Steel Corp. (NSC) which was executed on May 26, 2000.

In a letter to SEC Chairperson Lilia R. Bautista, Allengoal president Alexander S. Delmo warned that if the lease agreement is not acted upon, the firm would be "constrained to seek all immediate legal remedies" to protect itself.

According to Allengoal, it entered into a lease agreement with the NSC a few months after the steel firm closed in November 1999 due to its P18- billion debt burden.

Formal lease negotiations started in early April 2000, Allengoal claims and was concluded a month later.

In September 2001, Delmo offered through the SEC improved terms and provisions to the lease contract.

Allengoal coursed the offer through the SEC because NSC was already then under receivership and rehabilitation.

A motion to approve and allow the implementation of the lease contract was filed by Allengoal on Oct. 3, 2001.

Allengoal’s petition comes even as the creditor banks and the Department of Trade and Industry (DTI) continue to invite interested investors to bid for the lease/operation of the NSC.

Delmo in his letter, stated that "while we reserve our sentiments as to the propriety of inviting, soliciting and evaluating various bids for the lease, we believe such a course of action is being undertaken to formulate a most beneficial arrangement to all parties concerned."