MANILA, Philippines (AP) — The Philippine government has decided to liquidate National Steel Corp., once the the nation's largest steel maker, after the ailing company failed to find a new investor.
"We are preparing the order for the liquidation," Philippine Securities and Exchange Commission chairwoman Lilia Bautista said Tuesaday.
National Steel was the country's largest steel manufacturer until it suspended operations last November to halt deepening losses.
The company blamed an influx of cheaper imported steel from Russia and South Africa. But critics say it failed to modernize during years of government ownership and had serious internal problems.The government still holds a 12.5 percent stake in the company.
After suspending operations last year, National Steel secured a debt payment moratorium from the SEC and tried to secure approval for a rehabilitation program to nurse it back to profitability and settle more than $330 million in debts, owed largely to local banks.
Last month, National Steel's receiver committee recommended that the steel maker be liquidated after its Malaysian shareholders rejected a plan to salvage the company.
Pengurusan Danaharta Nasional Bhd., Malaysia's debt-restructuring agency, controls an 82.5 percent interest in National Steel.