Perwaja, Petronas agree to settle

by **Cals** Fri 14 Feb 2014, 08:36

Posted on 14 February 2014 - 05:37am

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PETALING JAYA (Feb 14, 2014): Perwaja Holdings Bhd's wholly owned subsidiary Perwaja Steel Sdn Bhd has reached an amicable settlement with Petroliam Nasional Bhd (Petronas) for full and final settlement of the outstanding RM275.77 million and the provision for the future supply of dry gas.

The company said in a filing with Bursa Malaysia yesterday that the two parties entered the settlement agreement on Monday and the executed copy from Petronas was received yesterday.

"This is an important milestone in Perwaja's recovery and represents a key element in reviving Perwaja Steel's operations. In addition, the Petronas settlement agreement is part of the group's plan to restructure its financial position and indebtedness under a regularisation plan required by Bursa Malaysia Securities Bhd as a PN17 issuer," it said.

"Moving forward, Perwaja Holdings will continue its ongoing discussions with other creditors of Perwaja Steel, including the financial institutions, to finalise a restructuring scheme that is acceptable to all parties, which will lead to improvement of operations for Perwaja Holdings and Perwaja Holdings ceasing to be a PN17 issuer," it added.

The company said the settlement agreement will not have any effect on the issued and paid-up share capital and the substantial shareholders' shareholding of the company as it does not involve any issuance of new shares or other securities.

It is also not expected to have any material effect on the consolidated earnings and consolidated earnings per share of Perwaja Holdings group for the financial year ending June 30, 2014.