IPIC to 1MDB: You have 5 days

IPIC said under the settlement of 1MDB’s debt obligation, there is a five business day ‘cure period’ for 1MDB to remedy their non-payment.

IPIC claimed that “failure to do so would mean that both MOF Inc. and 1MDB would be subjected to additional obligations to both IPIC and to Aabar Investments PJS (Aabar)”.

It is unclear however how much these ‘additional obligations’ would be.

IPIC confirmed that they have not received payments from 1MDB totaling US$603 million that was due to them from both 1MDB and Minister of Finance Incorporated (MOF Inc).

The debt obligation was agreed upon at the London Court of International Arbitration on May 11 this year. The first tranche of the payment totaling some US$603 million was due on July 31, 2017 but 1MDB failed to meet the debt obligation in that said period of time.

1MDB said the reason they have not been able to meet the payment was due to the fact that they have not yet received the funds arising from 1MDB’s rationalization plan.

1MDB reaffirmed earlier today that they will make the US$603 million payment in August 2017. It is unclear if they can meet the ‘five day cure period’ as stated in IPIC’s statement to the LSE.