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Abu Dhabi’s IPIC pushes back settlement and consent payment deadline
By Caroline Salls
Pittsburgh, Aug. 8 – International Petroleum Investment Co. PJSC (IPIC) granted the Minister of Finance (Inc.) Malaysia (MoF Inc.) and 1Malaysia Development Bhd (1MDB) until Aug. 31 to meet payment obligations that were due by July 31 under a settlement and consent award, according to a news release.
MoF Inc. and 1MDB must also pay default interest on the delayed payment.
IPIC said the payment extension is subject to MoF Inc. and 1MDB making payment of not less than $310 million of the full amount due, including default interest, by Aug. 12.
As previously reported, $602,725,000 and $26,024,509.59 were due on July 31 under the consent award and settlement.
IPIC said on April 24 that it would assume responsibility for payments on the $1.75 billion 5.75% notes due 2022 issued by 1MDB Energy (Langat) Ltd. and $1.75 billion 5.99% notes due 2022 issued by 1MDB Energy Ltd.
The notes are guaranteed by 1MDB and IPIC, and payments include interest and principal, according to a previous company notice.
Separately, the company reached an agreement for a settlement with Aabar Investments PJS, MoF Inc. and 1MDB.
Under the settlement terms, IPIC was to receive $602,725,000 by July 31 and another $602,725,000 by Dec. 31.
IPIC said last year that it had paid the $52,412,500 interest due on the 5.99% notes out of existing liquidity and under its obligations under the notes guarantee following the latest default by 1MDB.
After that default, which was the third, IPIC said it would increase its written demand for 1MDB and MoF Inc., Malaysia to fully indemnify IPIC for the guarantee payment, the interest paid on April 29 and the outstanding sum that was due to be paid to IPIC by Dec. 31.
The total amount due to IPIC from 1MDB and the MoF Inc. under the terms of the binding term sheet was $1,205,450,000 plus accrued interest.
IPIC is a sovereign wealth fund of the Emirate of Abu Dhabi.
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