1MDB pays IPIC settlement amount in full

Payment comes from rationalisation’s proceeds, says firm

1Malaysia Development Bhd says ‘all funds were paid from proceeds of the ongoing rationalisation programme’.

IPIC has received all the funds... under the settlement with the Minister of Finance Incorporated and 1MDB and the Consent Award made on May 9, 2017. 1MALAYSIA DEVELOPMENT BHD

1MALAYSIA Development Bhd (1MDB) has remitted to International Petroleum Investment Co PJSC (IPIC) in full all the funds required to be paid by Dec 31.

In a statement yesterday, 1MDB said this was pursuant to the Settlement Deed with the Minister of Finance Incorporated and IPIC.

“All funds were paid from proceeds of the ongoing rationalisation programme,” it said.

Reuters reported Abu Dhabi’s government-owned IPIC as saying that 1MDB had made all required payments as part of a settlement agreement between the two.

1MDB was required to pay IPIC about US$600 million (RM2.44 billion) by Dec 31, as part of a settlement agreement reached in April after 1MDB defaulted on its bonds, causing the Abu Dhabi company to ask a London court to arbitrate over a claim totalling US$6.5 billion.

1MDB had originally agreed to pay US$1.2 billion in two instalments to IPIC, with the first US$600 million due by July 31.

1MDB, however, missed the deadline because of the need to get “regulatory approvals” and made the payment in August instead.

“IPIC has received all the funds required to be paid to it by Dec 31 under the settlement with the Minister of Finance Incorporated and 1MDB and the Consent Award made on May 9, 2017,” IPIC said in a statement to the London Stock Exchange yesterday.