Negotiations are still on-going between the NSC, GIHLI and NSCs creditor banks but the transaction was initially accepted by the Malaysian company that took over NSCs former major stockholders, Hottick Holdings Inc.
NSC creditors however, are still asking for improvements in GIHLIs offer, particularly for a shorter repayment period 10 to at least seven to eight years from the original offer of 10 years.
According to the Land Bank of the Philippines (Landbank), one of NSCs major creditors, GIHLI was being asked to come up with a better offer that would shorten the repayment period once the company takes over the facilities of the steel plant.
The transaction, however, inched closer to being concluded as it got Danahartas approval. The state-controlled Malaysian firm took over Hotticks controlling shares in NSC when Hottick went belly-up earlier.
Landbank president Margarito Teves told reporters that GIHLI has already met with NSC creditors where the company was asked to make improvements on its offer, primarily the restructuring of the repayment period for NSCs debts.
Despite its deteriorating condition, NSC still attracted two serious offers from GIHLI and LML Metal Group. But GIHLI was the more serious of the two and its offer has been brought to the creditors for evaluation.
GIHLIs offer, according to Teves, was to lease the NSC facility with an option to buy. "But the creditors want GIHLI to firm up their price and shorten the repayment period," Teves said.
Teves said GIHLI was given 60 to 90 days to come up with a better package which would be evaluated by the creditors again.