In rebutting Mahatir, 1 MDB & Arul imagine away USD 2 billion in debt

by Ganesh Sahathevan 

In yet another Mahathir put-down , 1 MDB and its CEO Arul Azrul Iskandar Kandasamy said:

..........1MDB said it intends to settle is US$3.5 billion bond with International Petroleum Investment Company (Ipic) through an 'asset-for-debt' swap.
“This envisages 1MDB transferring to Ipic, 1MDB assets comprising USD denominated cash deposits and USD denominated fund units, in return for Ipic taking over the USD3.5 billion of bonds that it has guaranteed,” it said.

MDB said that it can also confirm that IPIC did provide and continued to provide the guarantees for the principal and interest of two US$1.75 billion bonds it had issued, with a total principal and interest amount of approximately US$5.5 billion.

IPIC's statement on the matter to the London Stock Exchange confirms that the amount owed is approximately US$ 5.5 billion, and not a mere US$ 3.5 billion that Arul wants us now to imagine:


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RNS
IPIC GMTN Limited  -  61HK   

1MDB Debt Settlement Arrangements

Released 07:00 10-Jun-2015


RNS Number : 7064P
IPIC GMTN Limited
10 June 2015
 

1MDB Debt Settlement Arrangements

On 28 May 2015, International Petroleum Investment Company (IPIC), Aabar Investments PJS (Aabar), Minister of Finance, Inc., Malaysia (MOF) and 1Malaysia Development Berhad (1MDB) entered into a binding term sheet that provides for the following principal matters:

·    on 4 June 2015, IPIC provided US$1 billion to 1MDB for 1MDB to utilise immediately to settle certain of its liabilities (the Cash Payment);

·    from 4 June 2015, IPIC has assumed the obligations to pay (on an interim basis) all interest due under two IPIC guaranteed 1MDB financings amounting to US$3.5 billion in aggregate principal amount (the Notes);

·    upon the completion of the transfer of assets as described below, IPIC will directly assume liability for all payment obligations under the Notes (theAssumption of Debt) and forgive certain financial obligations of the 1MDB Group to the IPIC Group (the Debt Forgiveness); and

·    by 30 June 2016, IPIC is to have received a transfer of assets with an aggregate value of an amount which represents the sum of the Cash Payment, the Assumption of Debt and the Debt Forgiveness.

1MDB and MOF have agreed to perform the obligations contemplated in the binding term sheet and to indemnify IPIC and Aabar for any non-performance, and vice versa.

IPIC has met the Cash Payment and will meet the interim interest payments under the Notes from existing liquidity available to IPIC.



This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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