ABS-CBNnews.com reported that a regional trial court in Batangas City of Philippines has ordered the liquidation of Steel Corporation of the Philippines.

The Batangas court issued the order on September 19, citing the following points
1. Rehabilitation is no longer a feasible option for SCP since it appears that it is now insolvent;
2. The continued operations of SCP is threatened by non-payment of its customs duties and other taxes; and
3. The actual result of business operations and financial condition of SCP cannot support the amortization schedule of the restructured debts in the approved rehab plan.

The move to liquidate Steel Corp is seen as a way to resolve the company's outstanding financial obligations to a consortium of creditor banks, which include Planters Bank, Chinabank, Land Bank of the Philippines, BDO and DEG.

The steel manufacturer has failed to comply with the provisions of the rehabilitation plan and with the orders of the rehabilitation court. The company has also failed to achieve the targets in the approved rehabilitation plan.

The court's liquidation order declared Steel Corp as insolvent and dissolved, and ordered the sheriff to take possession and control of all the properties of the debtor, except those that may be exempt from execution.

It also directed payments of any claims and conveyance of any property due debtor SCP to the liquidator; prohibiting payments and transfer of any property by SCP; directing all creditors to file their claims with the liquidator within the period set by the rules of procedure; and, authorizing the payment of administrative expenses as they become due.

The sheriffs have already implemented the court order and taken possession of the company's assets.

Source - ABS-CBNnews.com

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