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Report: Red Granite borrows money for US$60m settlement in 1MDB scandal
Published:  Sep 25, 2018 3:56 AM
Updated: 7:46 AM

Film production company Red Granite Pictures has reportedly taken out a loan to pay off the US$60 million settlement with US prosecutors over the 1MDB scandal.

US-based entertainment publication Variety, citing an industry source, said Red Granite had borrowed from Brevet Capital to finance the settlement.

"The funds will ultimately be returned to the Malaysian government, once certain processing fees are paid," said the report.

Brevet Capital Management describes itself as a company that provides "secured debt solution".

"Brevet’s focus on collateral allows us to provide solutions in situations where traditional lenders do not understand the value of a business or the opportunity," the company said on its website.

The US Department of Justice (DOJ) had accused Red Granite Pictures of using stolen money from Malaysian state fund 1MDB to finance its films, including The Wolf of Wall Street.

Red Granite Pictures was co-founded by former prime minister Najib Abdul Razak's step-son Riza Aziz (above) and businessperson Joey McFarland. Najib is facing criminal charges in Malaysia over the 1MDB scandal.

The company confirmed to Variety that it had completed the payment, which was six months ahead of schedule.

"Red Granite paid its obligation to the government in full... The company is pleased to put this matter behind it," the company was quoted as saying.

Under the settlement reached in March, Red Granite was to pay the US$60 million in three instalments over a period of one year.

Red Granite did not admit liability or wrongdoing under the settlement.

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