1Malaysia Development Berhad,Bond (finance),Coupon (bond),Investment company,Default (finance),Embezzlement,Arbitration

1MDB Paid Coupon With Its Funds This Quarter After April Default

December 21, 2016

1Malaysia Development Bhd. paid the interest on its bonds that were due this quarter after the debt’s Abu Dhabi co-guarantor was compelled to service the coupons earlier in 2016, which had led to the deepening of a $6.5 billion dispute. The payments could be part of an approach by 1MDB’s management to amicably settle a spat with International Petroleum Investment Co. PJSC even as the two sides pursue arbitration talks, Malaysia’s Second Finance Minister Johari Abdul Ghani said in an interview on Tuesday. The finance ministry oversees the state-owned investment company and is increasingly taking over its assets and projects as the government winds down the embattled fund. The sovereign companies are locked in a tussle that had spilled over to repayments on two sets of bonds issued by 1MDB and co-guaranteed by IPIC. That led to a default in April, adding to the financial scandals for the Malaysian fund that’s already at the center of global probes into alleged money laundering and embezzlement. IPIC paid the coupons after 1MDB missed...

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