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PETRONAS confirms that it entered into a Settlement Agreement with Perwaja Steel Sdn Bhd, a wholly-owned subsidiary of Perwaja Holdings Bhd, on 10 February 2014, where both parties have agreed to an out-of-court settlement for the debt amounting to RM275.77 million owed by Perwaja Steel to PETRONAS.
Under the Settlement Agreement, PETRONAS has agreed to allow Perwaja Steel to pay the debt in monthly instalments starting from August 2015.
In addition, PETRONAS 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.
