KUALA LUMPUR – 1Malaysia Development Berhad (1MDB) has settled its arbitration instalment amounting to US$360 million to International Petroleum Investment Corporation (IPIC).
Fully owned by the Ministry of Finance, 1MDB failed to fulfil the obligation of US$602.75 million (RM2.58 billion) by 12.00 p.m. last 1 August.
Following that, IPIC had given a grace period of five working days to 1MDB. However, 1MDB failed to make the payment too. Hence, the Abu Dhabi based investment company has agreed to extend the payment period to 31 August.
This comes with the condition that 1MDB is required to pay at least US$310 million from the RM602.75 due latest by 12 August.
1MDB in a separate statement earlier said that the due balance of the payment will be settled by the end of this month.
1MDB said the payment was pursuant to the amendment dated 8 August 2017 to the settlement deed with Minister of Finance (Incorporated) Malaysia and IPIC.
“All funds paid to IPIC were generated from the proceeds of the ongoing rationalisation programme,” 1MDB said in a statement. – MalaysiaGazette