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IPIC mulls pulling out of 1MDB’s debt plan

Reuters
Published:  |  Modified:

Putrajaya's rescue plan for debt-ridden 1MDB is at risk of falling apart, just three months after it was unveiled.

This follows news reports on UAE's International Petroleum Investment Company (IPIC) consideration to pull out of the plan.

In a report by Singapore's Business Times, citing sources, the deal between IPIC and 1MDB was "as good as off".

In May, IPIC had injected US$1 billion into 1MDB to help the latter repay its US$975 million loan from a coalition of banks led by Deutsche Bank.

The banks had sought an early repayment after discovering that the company's securitisation documentations were "incomplete".

IPIC was also to discuss plans to assume another US$3.5 billion of 1MDB's debts and forgive an unstated amount.

According to Singapore's Business Times , this may no longer happen.

1MDB denies report

In a press release, 1MDB dismissed the Business Times report as "speculative".

"1MDB strongly denies this unproven allegation.

"We in fact confirm that 1MDB remains engaged in discussions with IPIC, to conclude the transaction per the terms as officially announced by IPIC to the London Stock Exchange on 10 June 2015," it said.

1MDB said it was disappointed that a respectable and licensed publication would carry a story "based solely on unproven remarks by an unnamed individual".

"Such speculative reporting, which has no grounding in the facts, is clearly unprofessional and unnecessary".

1MDB said it remains committed to its rationalisation plan.

"This is proven through the various official announcements made to date on the binding term sheet executed with IPIC, the shortlisting of selected bidders for monetisation of Edra Energy and the ongoing sale process for Bandar Malaysia," it said.

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