Cabinet will study a report on the restructuring of 1Malaysia Development Bhd (1MDB) next week, said Second Finance Minister Ahmad Husni Mohamad Hanadzlah.

"Can 1MDB be restructured? I believe we can (do it). I am completing the report and will submit it to cabinet next week," he told the press at the Parliament lobby, after the tabling of the 11th Malaysia Plan.

Once cabinet makes a decision, Putrajaya will announce the next step to restructure 1MDB, said Ahmad Husni ( photo ).

The restructuring will involves the energy entities and properties, he said, adding that the details will be explained after he submits the report.

On May 19, Prime Minister Najib Abdul Razak had announced that his brainchild will be restructured.

Ahmad Husni said the government has come up with a concrete plan in restructuring 1MDB.

Government has been very open

"The government has been very open. We have asked the auditor-general to look into the details, conduct forensic auditing and come up with a report as soon as possible.

"We cannot just be pinching the people now, we have to have evidence," he noted.

Ahmad Husni said the auditor-general report on 1MDB, which incepted in 2009, will be released in stages.

"It's not easy to complete the report all in one - from 2009 to 2014. So, it means they will complete a certain year and submit (to Parliament first)," the Tambun MP added.

Meanwhile, Ahmad Husni said the government has no intention of seeing a cross-default following 1MDB's failure to repay its debt.

"We do not want it to default, as a default will cause a systematic effect," he said.

In preventing the cross-default, they will solve the short-term cashflow problems faced by the sovereign wealth fund , he added.

"So, we will settle it, in terms of asset quality. They have the assets to pay all," he said.

When asked how far is 1MDB from a cross-default, Ahmad Husni said: "Don't worry about that, that is why I said I would table it (1MDB's restructuring report) in the cabinet."

Rafizi Ramli (PKR-Pandan) has urged the government agencies to dispose their combined RM4 billion investments in bonds issued by 1MDB and its subsidiaries to prevent a cross-default.

In the event that 1MDB or its subsidiaries default on loan payments, then it would have problems paying its major bondholders such as Tabung Haji, Employees Provident Fund (EPF) and Retirement Fund Incorporated (KWAP), he said.

Citing reports on the possibility that a consortium of six foreign banks are now demanding that 1MDB pay its USD975 million (RM3.6 billion) loan four months ahead of schedule, Rafizi ( photo ) has warned the risk faced by the agencies.