Tenaga serves winding-up petitions on Perwaja Steel

KUALA LUMPUR: Tenaga Nasional Bhd has served three winding up petitions on Perwaja  Holdings Bhd's unit but this is being opposed by the loss-making steel maker as it contends it is undertaking a regularisation exercise.

Perwaja said on Tuesday its unit  Perwaja Steel Sdn Bhd was served with the petitions after the expiry of the notice period on Sept 16.

The petitions shall be heard in the Kuala Lumpur High Court on Nov 10, 2016.

Perwaja said its unit has sought legal advice from its solicitors who have advised it to take steps to contest the petitions.

The move to contest the petitions was on the basis that Perwaja Steel and its holding company, Perwaja were “in the midst of finalising a proposed regularisation plan for the benefit of all creditors of the Perwaja group including Tenaga”.

Recall on Aug 26, Perwaja announced Tenaga was demanding for a total payment of RM131.52mil.

Perwaja Steel was given 21 days to settle the outstanding amount failing which winding up proceedings shall be instituted against the company.
 
Perwaja Steel had on Feb 18, 2014 signed a settlement agreement with Tenaga where it was agreed the former would settle RM164.05mil in montly instalments.

However, Perwaja Steel had failed to perform its payment obligations pursuant to the settlement agreement given that it has ceased operations since August 2013.

This resulted in Tenaga taking action to terminate the settlement agreement and to demand from Perwaja Steel all remaining outstanding amounts.