Shandong Molong Petroleum Machinery (HKG:0568, SHE:002490) agreed to assign 169.1 million yuan debts owed to it by Shouguang Baolong Petroleum Equipment to Shandong Shouguang Vegetable Wholesale Market.

84 million yuan of the debt will be settled via cash payment by the purchaser while another 85.1 million yuan debt will be settled through a transfer of 109,200 square meters of industrial land, a Thursday bourse filing said.

The land is located in China's Shouguang City, Shandong Province, and has a usage term from May 14, 2001, to May 15, 2061.

The two partial debts are parts of the 461.7 million yuan owed by Shouguang Baolong Petroleum Equipment to the company.

After the completion of the two transactions, the company will still be owed 292 million yuan by Shouguang Baolong Petroleum Equipment.

The company plans to use the cash proceeds from the assignment of the partial debt for its general working capital and for payment for goods and raw materials.