The Securities and Exchange Commission (SEC) has extended the suspension of debt payments of debt-strapped National Steel Corp. (NSC) and sugar milling firm Victorias Milling Corp. (VMC) for another month.
The SEC gave the steel firm until May 17 to submit its revised rehabilitation plan while VMC will have until May 15 to submit its rehabilitation plan.
VMC said it needed the extension to come up with a revised rehabilitation plan following the failed bidding for about 53 percent of the company's stake last month.
The extension of debt reprieve will keep NSC's creditors at bay for almost a month while allowing it to fine tune its amended rehabilitation plan that will detail its strategies to reverse the financial losses of the company.
The interim receivers for NSC led by Monico V. Jacob, Guido Alfredo Delgado and Antonio Arizabal, asked for the extension since they are still negotiating with creditor banks on how to resuscitate the company, the inputs of which will be reflected in the amended rehabilitation plan.
The receivers met the steering committee of creditor banks, including representatives of the Philippine National Bank, Land Bank of the Philippines, Global Bank and Credit Agricole.
The banks agreed to rehabilitate the company and to immediately preserve its assets to keep these from deteriorating. The banks also agreed to appoint a comptroller.
The receivers also met with the management of NSC to express the creditor banks' concern about maintaining the assets and equipment of the company.