Identification of Available Domestic Facilities
- Philippine Blooming Mills (PBM), a domestic corporation, possesses similar billet-making facilities that are currently idle.
- PBM is under rehabilitation supervised by the Securities and Exchange Commission (SEC).
- Despite prolonged rehabilitation attempts, no final plan has been agreed upon by PBM's creditors and stockholders.
- It is determined that operating these facilities at PBM's current location is economically unfeasible.
- Immediate transfer of the facilities to NSC is considered in the best interest of stockholders, creditors, and the general public.
Directives to the Securities and Exchange Commission (SEC)
- The SEC is mandated to execute an immediate sale of the identified billet-making facilities from PBM to NSC.
- The facilities include electric arc furnace, continuous casting machine, oxygen generating unit, and related auxiliaries as detailed in Annex "A".
- This sale operation serves as a preliminary rehabilitation plan for PBM.
Terms and Conditions of the Sale
- The total purchase price for the facilities is fixed at P60 million, deemed fair and reasonable by agreement between NSC and Philippine National Bank (PNB).
- Payment is to be made in four equal quarterly installments of P15 million each.
- The first installment is due thirty (30) days after the finalization of the Deed of Sale.
Management of Sale Proceeds
- Proceeds from the sale will be deposited in escrow with the Philippine National Bank (PNB).
- Deposited funds are subject to any existing liens and claims attached to the facilities as determined by applicable law and the SEC.
Post-Sale Obligations of NSC
- NSC is instructed to support the rehabilitation efforts of PBM by supplying steel billets under reasonable quantities, terms, and conditions.
- These billets are intended for PBM's bar and rod rolling operations to facilitate continuity of production despite facility transfer.
Legal Authority and Effectivity
- Issued under the constitutional powers of the President of the Philippines, Ferdinand E. Marcos.
- Formalized and effective as of February 18, 1983, in Manila.
Overall, the instruction aims to promote industrial development by rationalizing resource use, facilitating corporate rehabilitation, conserving foreign exchange, and ensuring coordinated cooperation among government entities and corporations.