KINIBIZ As 2015 comes to a close, self-styled strategic development company 1MDB has just managed to squeeze in one final deal, which advances its debt rationalisation efforts yet another step forward.

This brings the company’s tally of major deals under its debt rationalisation plan to three - a white-knight deal with International Petroleum Investment Co (IPIC) in end-May, full disposal of its power assets in end-November, and the divestment of 60 percent equity in its Bandar Malaysia development project via a deal inked on the last day of the year.

Taken together, these deals may resolve 1MDB’s debt conundrum or at least come very close to it. An interesting light is cast on the timing of the Bandar Malaysia divestment by a statement from embattled Prime Minister Najib Abdul Razak on June 14, 2015 that 1MDB issues will be fully resolved within six months.

As at March 31, 2014 (FY14), 1MDB has some RM42 billion in borrowings and about RM48 billion in liabilities, according to its annual accounts. In comparison, across the three major deals 1MDB may have managed to reduce its debts by as much as RM41.2 billion, according to rough KINIBIZ calculations, which nearly matches its total borrowings as at FY14.

Najib told Bloomberg that this reduction is some RM40.4 billion , however. In any case, these do not take into account potential increases in 1MDB’s borrowings since then as FY15 accounts, originally due by Sept 30, 2015, are not yet available.

And advances on the debt rationalisation front contrasts starkly with relative lack of progress in terms of accountability issues - relatively scarce answers have been forthcoming in terms of 1MDB’s questionable dealings in the past, which have directly led to the company being in its current predicament.

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