Copyright 2000 AFX News Limited
AFX - Asia
SECTION: COMPANY NEWS
LENGTH: 181 words
HEADLINE: SEC allows National Steel receiver to enter
contracts to preserve assets
DATELINE: MANILA
BODY:
The Securities and Exchange Commission has granted
the interim receiver of debt-laden National Steel Corp permission to
negotiate and enter into contracts necessary to preserve the assets of
the steel firm.
In its order, the SEC gave the interim receiver of National Steel authority to
dispose some corporate assets to defray the necessary expenses of the company.
Both the National Steel management and the receiver, however, should seek the
approval of the SEC prior to the disposal of any asset.
The order also directed creditors of National Steel to submit within 15 days
their comment on the amended rehabilitation plan of the company.
Under the plan submitted by the receiver to the SEC last month, 9 bln pesos of
the steel firm's 16.5 bln pesos in debts will be restructured while the balance
will be converted into equity.
The plan also calls for a strategic investor which will infuse an additional
capital of 600 mln usd to 1.0 bln into National Steel.