1MDB says payment to IPIC will be made in August

The cost of insuring Malaysia

KUALA LUMPUR: 1 Malaysia Development Bhd (1MDB) said on Tuesday it had written to International Petroleum Investment Co. (IPIC) to inform them that the obligations, due on July 31, would be made in August.

In a three paragraph statement, 1MDB said all payments due from 1MDB to IPIC will be made from the proceeds of the 1MDB rationalisation plan.

“1MDB itself is awaiting funds that were due to be received in July 2017. Due to the need for additional regulatory approvals, the receipt of those funds has been delayed to August 2017. 

“As these are the funds which will be used to pay IPIC, 1MDB has written to IPIC to inform them of our commitment to meet the obligations, originally due on 31 July 2017, in August 2017,” it said.

Meanwhile, in a statement to the London Stock Exchange, IPIC said “Under the settlement, there is a five business day cure period for MOF Inc. and 1MDB to remedy their non-payment before MoF Inc. and 1MDB become subject to additional obligations to IPIC and Aabar,” it said.

IPIC had said that as at July 31, it had not received the payments of US$602.72mil and US$26.02mil that were due to be paid under the consent award and the settlement by MoF Inc. and 1MDB.