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Malaysian firm to sell NSC stake
By Gil C. Cabacungan Jr
26/8/2001 5:41 am Sun
[Hmmm... mengapa tidak mahu kes ini dibawa ke mahkamah???
Posted: 8:30 PM (Manila Time) August 24, 2001
By Gil C. Cabacungan Jr.
Inquirer News Service
The source said this was a major breakthrough in the ongoing efforts
to attract a long-term investor to take over NSC and take charge in
reviving the operations of the steel giant. NSC has been mothballed
since November 1999 due to its inability to pay 16 billion pesos
(about 313 million dollars) in debts.
The source said the agreement by Danaharta was reached during
President Gloria Macapagal-Arroyo's state visit to Malaysia early
NSC has remained shuttered for 20 months due to a dispute between
Danaharta and the bank creditors of NSC led by the Philippine
National Bank over the liquidation of NSC's assets.
Danaharta earlier declared it would agree to sell its stake in NSC
only if it could recover all of its investments in the company. The
banks found this unacceptable because it was inevitable that all
parties would take a hit in the sale of NSC assets. The resulting
dispute has since been the subject of a corporate case pending with
the Securities and Exchange Commission.
Danaharta became involved in NSC when took over a
three-billion-ringgit loan of Malaysian-controlled Hottick
Investments Co. from Malayan Banking, RHB Bank, Bank Bumiputra
and Commerce Assetholding Bhd.
Hottick, based in Hong Kong but controlled by Malaysia's Renong
Bhd, had taken control of NSC when in 1997 it bailed out the
Westmont group, the Malaysian investor that had won the Philippine
government's auction to privatize NSC.
The Macapagal administration has obtained agreement of NSC's
Malaysian investors and local creditor banks to sit down and review
proposals for a temporary reopening of NSC's steel factory in Iligan
province, in Mindanao, pending the entry of a "white knight" that will
undertake the long-term rehabilitation of NSC, the country's biggest
In case the Malaysian government and local creditor banks still fail
to reach a common ground on reopening NSC, the Philippine
government would step in and make the final decision.
Both the Malaysian government and the group of banks have agreed
to abide by whatever the Philippine government will decide, and both
have promised not to bring the case to court.