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Liaoning Province based Chinese steelmaker Lingyuan Iron and Steel Co has announced that it has received a notice from the State owned Assets Supervision and Administration Commission of the city of Chaoyang in Liaoning Province informing it of the termination of the reorganization plan for the company.On May 3rd 2012, the State owned Assets Supervision and Administration Commission of Chaoyang together with China National Service Group Co signed a framework agreement for the reorganization of Lingyuan Steel and its subsidiary Longshan Asset Management Co. According to the agreement, CTS offered USD 500 million in cash to purchase a 51% stake in Lingyuan Steel and its subsidiary Longshan Asset Management Co with 10% of the USD 500 million to be used to increase the working capital of the companies.However, the reorganization proceeded slowly and was delayed and so the State owned Assets Supervision and Administration Commission of Chaoyang and CTS decided to terminate the reorganization plan.