Philippine lenders plan their own rescue of steelmaker

Unlike the Malaysian banks that were forced to write off 100% of loans to NSC, Philippine lenders will likely lend more.

Creditor banks are planning to take over and rescue the Philippines' loss-making National Steel Corporation NSC. The 14 creditors, led by Philippine National Bank PNB, have grown impatient with a receivership committee that was supposed to have resolved the steelmakersÆ problems and found a new strategic investor to lead the troubled entity, according to the Philippine Daily Inquirer.

Creditor banks are now considering chipping in a total of $30 million to get the country's largest steelmaker operating again. ThatÆs less than 10% of the outstanding debt NSC owes to creditor banks. NSCÆs receivers said in May it needs $600 million in new capital and must convert half of its...

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