Ahmad Sarji and the PNB board may be compelled to appoint receivers to 1 MDB

by Ganesh Sahathevan 

Tun Ahmad Sarji and the Permodalan Nasional Bhd board may be under a duty and therefore compelled to appoint receivers to 1 MDB. As previously reported, the 1 MDB Sukuk facility default provisions have been triggered and RM 2.4 billion  may be payable immediately.

It has been reported (and PNB has dutifully denied) that  PNB bought RM579.2 million of that  1MDB sukuk issue. Given the twists,turns,and pirouettes in the 1 MDB story, often spun by 1 MDB itself,that denial can probably be discounted ,and the PNB board may be assumed to be under a duty to the  corporation to protect its interest in that investment in 1 MDB. Failure to do so may give rise to a claim  for damages , by the millions of Bumiputera unitholders, against the board.

END



by Ganesh Sahathevan



The deluge of "tampered" documents seems never ending.These excerpts are from the 1 MDB, 1 MDB RE , Bandar Malaysia Sdn Bhd information memorandum filed with the Securities Commission. Given the default on the IPIC guaranteed loans, as well as the demand for early repayment of the Deutsche Bank syndicate loan, the consequences of the following provisions are obvious: 







2. PRINCIPAL TERMS AND CONDITIONS -(c) Facility description : 

An unrated sukuk issuance programme based on the Shariah principles of Murabahah (“Sukuk Murabahah”) of up to RM2,400.0 million in nominal value (“Sukuk Murabahah Programme”). 

7. During the tenure of the Sukuk Murabahah, BMSB (as part of its obligation to pay the Deferred Sale Price) shall make periodic Profit Payments (as defined in item 2(j) below) to the Sukukholders. Upon maturity (unless earlier redeemed) or upon the declaration of an event of default, BMSB shall pay all amounts outstanding in respect of the Deferred Sale Price (subject to Rebate (Ibra’) (as set out in item 2(y)(viii) below), where applicable) of the relevant Sukuk Murabahah upon which the relevant Sukuk Murabahah will be cancelled.



2. PRINCIPAL TERMS AND CONDITIONS -(v) Events of default, dissolution event and enforcement event, where applicable :



 Events of Default are as follows:-


6. where any other indebtedness of the Issuer or any Third Party Security Provider becomes due and payable prior to its stated maturity or where the security created for any other indebtedness becomes enforceable, and if disputed by the Issuer or such Third Party Security Provider, such dispute has not been resolved within forty-five (45) days. No Event of Default will occur if the aggregate amount of the indebtedness above is less than Ringgit One Hundred and Fifty Million (RM150,000,000.00);












A Reurters report of the facility is provided below for reference:




Related: FINANCIALS

Malaysia's 1MDB to sell $729 mln sukuk for Bandar Malaysia relocation








(Corrects headline to million from billion.)
Feb 18 (Reuters) - Malaysian sovereign wealth fund 1Malaysia Development Bhd (1MDB) plans to sell 2.4 billion ringgit ($728.49 million) worth of Islamic bonds to finance the relocation of defence units from land marked for government development project Bandar Malaysia.
Bandar Malaysia Sdn Bhd, a unit of 1MDB Real Estate Sdn Bhd, said in a statement to the central bank on Tuesday that it will issue one- to 10-year sukuk by private placement to unnamed buyers.
AmInvestment Bank Bhd is advising on the sale of the sukuk, which will not be rated by credit-rating firms.
The funds raised will be spent on building bases for eight defence units including the police, air force and an artillery regiment.
Army pension fund Lembaga Tabung Angkatan Tentera won a 2.1 billion ringgit contract nearly a year ago to relocate the units from the Bandar Malaysia site.
Bandar Malaysia is a 196-hectare development in the capital city, Kuala Lumpur.
1MDB's last Islamic bond sale was in May 2009 when it sold 5 billion ringgit worth of 30-year bonds.
The sovereign wealth fund, chaired by Prime Minister Najib Razak, is also raising funds to pay off $6.5 billion in debt taken on to buy power plants and a joint venture with Abu Dhabi's Aabar Investments PJS.
Last month 1MDB said it plans to list the power plant assets this year in an initial public offering worth around $2 billion.
The $6.5 billion debt sale, managed by Goldman Sachs, was the subject of much negative publicity as few details were made public and as it involved huge fees for the U.S. bank, according to Thomson Reuters publication IFR. ($1 = 3.2945 Malaysian ringgit) (Reporting by Al-Zaquan Amer Hamzah and Yantoultra Ngui; Editing by Christopher Cushing)

Comments

  1. Arab LoanApril 28, 2016 at 2:48 AM

    This comment has been removed by a blog administrator.

    ReplyDelete

Post a Comment

Popular posts from this blog

"Not new or worthy of consideration" : WA Corruption & Crime Commissioner confirms but dismisses Anne Azza Aly 's referring queries about PAVE, her work to Malaysia

Image
by Ganesh Sahathevan       John McKechnie The issues raised on my related RealpoltikAsia blog in the posting:  ALP's Anne Aly's Phoenix Consulting of Dubai provides covert intel training-Who does she report to in Dubai, and then there is the matter of Malaysia....... were brought to the attention of The Hon John McKechnie QC,the current Commissioner, WA Corruption and Crime ,given the security implications that arise from the connections between PAVE and one David (Dave) Allen, currently Assistant Director Intelligence,WA CCC. McKechnie's response is as follows: Thank you for the email. I am the Corruption and Crime Commissioner. I will decide if and when Mr Allens security clearance should be reconsidered but nothing in this email is either new or worthy of consideration. The Hon John McKechnie QC Readers have now confirmation from no  less a personage than the WA CCC Commissioner himself, a former judge and QC,of the fact of Aly's Dubai connection, and her ref...
Read more

If Damien Tudehope's COVID hotel quarantine fee statements are correct, SLHD revenue reported in financial statements signed by former CEO Teresa Anderson is overstated, and false

Image
 by Ganesh Sahathevan                     Tough talking Damien Tudehope may not have the power to impose th.  bulk of his quarantine fee, if any Readers will recall that former NSW Police Commissioner Mick Fuller (now a PwC partner) said in his notice that Revenue NSW " will be charging a mandatory quarantine fee". Readers will also recall that the rormer NSW Minister For Financial Services, Damien Tudehope insisted that the quarantine fees charged by Sydney Local Health District, pursuant to the NSW Health Services Act include charges for police security. However, there is nothing  in the SLHD's financial statements for the relevant periods (see links below) to reflect any payment from the COVID quarantine fee revenue being made over to NSW Police. SLHD's revenue must then have been overstated, by the CEO concerned Teresa Anderson.  SLHD Financial Statements https://www.health.nsw.gov.au/annualreport/Publicat...
Read more

Strata managers' aversion to contact with tenants can leave strata managers exposed to personal liability

Image
 by Ganesh Sahathevan      Advice for living in, or buying into, a strata community Strata managers are employed to manage strata schemes which are often home to renters as well as owners. However, in evasion of that which they are paid to do there are instances where strata managers have attempted  to evade their duties by refusing to  deal with tenants.   Even this writer can recall an instance where the strata manager warned that it was against the law for tenants to contact him directly.  The instances where strata managers have refused to deal with tenants occur when the issues raised concern fairly pedestrian maintenance issues, for example blocked plumbing and the like. Having said that, tenants do actually have a legal right to a great many things, including being informed (and presumably make representations) when strata schemes consider re-development. Strata managers who seek to stand in place of strata committees  are even more e...
Read more