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Under the settlement deal, Petronas agreed to allow Perwaja Steel to pay the debt in monthly instalments starting from August 2015, it said on Friday February 21.
At the same time, Petronas said it has also agreed to supply dry gas to Perwaja Steel on an advance payment basis.
“Petronas would like to emphasise that the settlement agreement is a business decision to increase its potential of recovering the debt in full,” it said.
Perwaja Steel, one of Malaysia’s biggest integrated producers of primary steel products, including billet and bloom, confirmed to Steel First on January 10 that it had halted production to focus on restructuring its finances.
Petronas has reached an out-of-court settlement with Perwaja Steel, a unit of Perwaja Holdings, over debts the latter owed the state-owned oil and gas company, amounting to 275.8 million ringgit ($83 million).