Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 1292)
The purpose is to order the immediate sale of the billet-making facilities of Philippine Blooming Mills (PBM) to National Steel Corporation (NSC) as part of PBM's preliminary rehabilitation plan, to conserve foreign exchange and support the rehabilitation of PBM.
The Securities and Exchange Commission (SEC) is ordered to cause the immediate sale.
The facilities include the electric arc furnace, continuous casting machine, oxygen-generating unit, and their respective auxiliaries.
The total purchase price is P60.0 million as jointly determined by NSC and Philippine National Bank (PNB).
Payment is to be made in four quarterly installments of P15.0 million each, with the first payment due 30 days after the Deed of Sale is finalized.
PNB is to hold the proceeds of the sale in escrow, subject to existing liens and claims as provided by law and determined by the SEC.
Because the billet-making facilities cannot be economically operated in their present location under any feasible rehabilitation plan, and the transfer is in the best interest of stakeholders and the public.
NSC is ordered to supply the steel billets needed for PBM's bar and rod rolling operations under reasonable quantities, terms, and conditions.
The sale is subject to existing liens and claims on the facilities as provided by law and as may be determined by the SEC.