1 MDB bonds: Never mind IPIC, trustees of all USD bonds have a duty and likely to pursue 1 MDB, MOF Inc, and the Malaysian Government for full redemption plus interest


by Ganesh Sahathevan

The Malaysian Government seems to have not understood that the trustees of its various bond offerings have a duty to pursue the bond issuer 1 MDB and all other parties related to the issue,including the MOF Inc, the Malaysian Government , the Minister for Finance,the Prime Minister, and all others, whoever they may be. The trustees are not limited to pursuing the guarantors on record, such as IPIC of Abu Dhabi.

Therefore, while it suits the The Bank of New York Mellon , trustee for the
U.S.$1,750,000,000 fixed rate 5.75 per cent. notes due 2022 issued by 1MDB Energy (Langat) Limited to request IPIC as co-guarantor to make good on the default by 1 MDB, it only does so because it is in the best interest of its beneficiaries, the bondholders. It is not relevant to the trustees that IPIC and 1 MDB may be in dispute, and that as a consequence interest payments stalled, delayed or suspended.

Given the continued defaults by the issuer, 1 MDB, the trustees are likely to find themselves in a position where they will have to pursue accelerated redemption ,which is likely to include a demand for future interest payments to be paid in a lump sum.
It is probably for this reason that the Malaysian Government is preparing to consolidate its 1 MDB bonds in order to repay bondholders.

Naturally, this will mean less or even no money left to pay IPIC the USD 1.2 billion and counting that it is owed.

END

Comments

Post a Comment

Popular posts from this blog

Sydney is not Soweto, its Asian migrants are not coloureds, or persons of colour - South African Australian Judge Angus Morkel Stewart's decision in Faruqi v Hanson an insult to anyone who is not white

Image
 by Ganesh Sahathevan  In the recent Federal Court Australia decision in   Faruqi v Hanson   Mr Justice Angus Morkel Stewart (Stewart J)  found at [242]: I am comfortably satisfied that both groups of people in Australia that I have identified, being persons of colour who are migrants or of relatively recent migrant heritage and persons of colour who are Muslim, are reasonably likely, in all the circumstances, to have been offended (ie profoundly and seriously), insulted, humiliated and intimidated by Senator (Pauline ) Hanson’s tweet. The case concerned   a tweet  that One Nation leader Pauline Hanson directed at  Deputy Greens leader Senator  Mehreen Faruqi. Mehreen is Pakistani Muslim who continues to advocate for Pakistan as a senator of the Senate, Parliament Of Australia.  Senator Hanson wrote in her tweet "piss off back to Pakistan" after Senator Faruqi commented on the death of Queen Elizabeth II. While Stewart J's has hand...
Read more

Ex NSW LPAB Executive Officer Louise Pritchard ,subject of queries from The Australian, hired by Sydney University since early 2019 -NSW LPAB has never explained her departure, UYSD the reasons for her appointment

Image
  by Ganesh Sahathevan  In January 2019 The Australian reported:  The body overseen by Chief Justice Tom Bathurst responsible for deciding who can practise law in NSW relied on a wildly defamatory Malaysian blog depicting ABC journalists, former British prime minister Tony Blair, financier George Soros and others as part of a global conspiracy when deciding to deny a would-be solicitor a certificate to practise. Chief Justice Bathurst and Legal Practitioner Admission Board executive officer Louise Pritchard declined to answer The Australian’s questions about how the article came into the board’s hands and why its members felt the conspiracy-laden material could be relied upon as part of a decision to deny Sydney man Ganesh Sahathevan admission as a lawyer. Nor would either say which of the 10 members of the LPAB, three of whom are serving NSW Supreme Court judges, was on the deciding panel. Ms Pritchard has left her role at the LPAB since The Australian began making inqui...
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