Delong Holdings said on Friday that it has received an additional payment of 32.53 million yuan from the People’s Government of Laiyuan County, or PGLC, for the cessation of Aoyu Steel’s operations.
That was part of the total consideration of 968 million due from PGLC under the China capacity reduction plans, it said in a filing to SGX after the market close on Friday.
Including the most recent payment, which was made on Friday, and the first four installments of 208 million yuan, 160 million yuan, 15.73 million yuan and 63.74 million yuan, made between 31 August 2017 and 29 June 2018, the balance still outstanding is 488.00 million yuan, Delong said.
“As PGLC is a government authority, the relevant payment processes may be subject to bureaucratic considerations at various levels of government departments. Consequently, payments may take longer than originally envisaged,” Delong said. “The company will continue following up with PGLC on the necessary payments.”