A construction worker works in front of a 1Malaysia Development Berhad (1MDB) billboard at the Tun Razak Exchange development in Kuala Lumpur, Malaysia February 3, 2016. REUTERS/Olivia Harris/File Photo
KUALA LUMPUR: Abu Dhabi’s International Petroleum Investment Company (Ipic) and Aabar Investments PJS have submitted a request for arbitration (RFA) to the London Court of International Arbitration, said 1Malaysia Development Bhd (1MDB).
In a statement on Tuesday, the company said it and its legal counsel would review the RFA once it had been served with a copy.
The strategic investment fund reiterated that, notwithstanding the dispute with Ipic, it has a strong liquidity position and was able to honour its current debt obligations.
According to a filing to the London Stock Exchange by Aabar, the RFA concerned the failure by 1MDB and Minister of Finance Inc (MOF) to perform their contractual obligations under the binding term sheet (BTS) as described in Ipic GMTN Ltd’s announcement of June 10, 2015.
The failure of 1MDB and MOF to perform their obligations, cure their defaults or put forward acceptable proposals has left Ipic in the position where it must pursue its claims in arbitration.
The total amount claimed by Ipic/Aabar is about RM26.5bil.
The claim will be determined by an arbitral tribunal that will comprise three arbitrators in accordance with the BTS and the LCIA Rules. - Bernama
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