IPIC to claim US$50.3m from MoF, 1MDB

PETALING JAYA: International Petroleum Investment Company (IPIC) is claiming the US$50.3 million in interest payment it paid for a US$1.75 billion 1Malaysia Development Bhd (1MDB) bond it guaranteed from 1MDB.
1MDB last Monday announced that it had defaulted on the US$1.75 billion 1MDB Energy (Langat) bond following a dispute with IPIC, triggering cross-defaults for RM7.4 billion in other bonds.
IPIC told the London Stock Exchange (LSE) it will make a written demand of the joint indemnity for repayment of the interest payment from Minister of Finance Inc Malaysia (MoF) and 1MDB in keeping with the terms of the binding term sheet.
On April 18, 2016, IPIC told the LSE that it had terminated the May 28, 2015 binding term sheet between IPIC, MoF and 1MDB after 1MDB and MOF failed to perform certain payment and other obligations owed to the IPIC group, including the obligation to pay to IPIC US$1.1 billion plus interest accrued. IPIC had then said it had performed all its obligations under the binding term sheet.
The binding term sheet was to have seen IPIC take over US$3.5 billion of 1MDB debt for the equivalent of transfer of undisclosed 1MDB assets.