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Kuala Lumpur: Perwaja Holdings' unit, Perwaja Steel Sdn Bhd, has signed an agreement with Petroliam Nasional Bhd (Petronas) for the full settlement of RM275.77 million it owed and the provision of future supply of dry gas.In an announcement to Bursa Malaysia Thursday, the steel maker said the agreement was sealed on Monday.

"This is an important milestone in Perwaja's recovery and represents a key element in reviving Perwaja Steel's operations," it said.

Perwaja Holdings said the agreement was part of its plan to restructure financial position and indebtedness.

"The company will continue its on-going 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 it ceasing to be a PN17 issuer," it said.

It said the execution of the agreement was also unlikely to have effect on the consolidated earnings and consolidated earnings per share for the financial year ending June 30, 2014. - Bernama