Commercial contracts does not work like that. For acquisition contracts like that, it is likely that the final payment - which tends to be a significant portion of the full value - is required to be ...
Actually normal commercial contract for acquisition of fixed assets with significant amount would compose of several instalments for the whole invoice sum likely deposit, 1st and 2nd instalment on delivery, final payment upon fulfilling inspection criteria (驗收) and retention. Regarding long serving commercial relationship, final payment upon fulfilling inspection criteria would consist of 30-40% commonly, being favourable for purchaser in terms of cash flow and remaining retention would be about 5% after the pre-determined service period agreed for the fixed assets, commonly 2-5 years after receipt of fixed assets.
Although I haven't learnt the exact specific term for the said unsettled debts referring to, it would be a significant amount if referring to the final payment upon fulfilling inspection criteria. If supplier has fallen the trap that licensing new buses would be the criteria invoking the due for the debts, then LC can't guarantee the receipt of remaining debts until the bus finally got licensed. I do think supplier would not foresee the debt being aged more than 1 year resulting a great impact for the supplier financially. But it is not surprising that the business relationship has already been damaged, not to say any incentives for further new business opportunities unless all debts have been settled.
