August 31 is new deadline for 1MDB

The International Petroleum Investment Company (IPIC) has granted the Ministry of Finance Malaysia (MOF) and 1Malaysia Development Berhad (1MDB) until August 31, 2017 to complete the payment that 1MDB owes to IPIC.

This is the second extension that IPIC is giving 1MDB on the missed scheduled payment.

The first extension IPIC gave to 1MDB was up to five days from the day 1MDB missed their initial deadline, which was supposed to be on August 8.

IPIC said in their August 1 statement to the London Stock Exchange that any payments made after this five-day grace period would incur additional charges to their original debt.

READ: IPIC to 1MDB: You have 5 days

READ: 1MDB to use money from rationalisation plans to pay IPIC

It is unclear at present time if this new deadline would carry such ‘additional charges’.

IPIC said the extension to push the new deadline to August 31 is subject to both MOF and 1MDB making payment of not less than US$310 mil (RM1.2bil) of the full amount due on or before August 12 this year.

The payment 1MDB is to make by August 31 is part of the US1.2bil (RM4.8 bil) settlement of a debt dispute and is half the amount that is due to IPIC.

IPIC is the investment company of the Mubadala Group, with is based in Abu Dhabi.

1MDB said on August 1 that the reason they couldn’t make payment to IPIC within the deadline period is because ‘additional regulatory approvals’ are needed from the funds they are raising following the restructuring plan of 1MDB.