Perwaja stuck in a stalemate

Payment defaults: Perwaja’s Kemaman plant was forced to shut down in August 2013 after its energy supply was cut, as the company had repeatedly missed payments to Tenaga and Petronas.

THE latest restructuring plan to fix ailing steel maker Perwaja Holdings Bhd, which would have seen the entry of a diversified China-based group as a strategic shareholder, fell through because it did not meet the expectations of its long-standing creditors, sources say.

Perwaja, which has outstanding debts of about RM2bil, owes utility providers Tenaga Nasional Bhd (Tenaga) and Petronas Gas Bhd (PetGas) over RM400mil in electricity bills and gas supplied. It is also said to owe the government over RM200mil, with the rest owed to banks and other parties.