SEC names interim receiver for NSC

The Securities and Exchange Commission (SEC) has appointed a three-man interim receiver for debt-laden National Steel Corp. (NSC) led by former SEC commissioner Monico V. Jacob.

Appointed as members of the receiver are Guido Alfredo Delgado, the immediate past president of the National Power Corp. and Antonio Arizabal, former chief executive officer of NSC and former minister of the science and technology department.

Jacob is also one of the member-receivers of ailing Philippine Airlines and the Uniwide Group of Companies. Jacob was also the former chairman and chief operating officer of the country's most profitable oil refiner, Petron Corp. and was one of the key negotiating officers of the partial sale of the oil firm to the biggest Middle East oil company, Saudi Aramco.

Prior to his stint at Napocor, Delgado was president of the Northern Mindanao Development Bank.

The interim receiver will immediately take charge of the assets, properties and facilities of NSC in accordance with PD 902-A, and the rules on procedures on corporate secretary.

The SEC approved recently the extension of the suspension of debt payments of NSC. The NSC earlier asked the corporate watchdog to approve its proposed rehabilitation plan and creation of a management committee.

NSC creditor banks led by the Philippine National Bank, Asian Bank, Allied Bank, Land Bank of the Philippines, and Westmont Bank (now United Overseas Bank-Philippines), have opposed the Iligan-based steel firm's appeal.

The banks said while NSC reasoned out the extension is needed to be able to talk to possible strategic investors that could infuse new capital and enable it to resume operations and to prevent creditors from foreclosure proceedings - the company has in fact, much earlier unilaterally ceased operations, laid off its employees, leaving its plants, machines and equipment lying idle "in sheer abandon" not because of, but in spite of foreclosure action against the creditors.

Moreover, NSC has an active and pending injunction case filed before the Regional Trial Court of Iligan City against the PNB-led consortium, preventing them from foreclosing the assets of the company.