1MDB and Abu Dhabi are haggling over millions in debt repayment like ex-lovers returning each others’ possessions. finews.com looks at the latest twist – and an ultimatum.
1MDB and Abu Dhabi’s sovereign wealth fund are locked in a standoff more reminiscent of bickering ex-lovers than of two nations prominent on the international stage.
Indeed, the love affair is definitely over: Last week, Abu Dhabi put 1MDB over a barrel for missing a major repayment on two bonds worth $3.5 billion, after the two buried the hatchet in arbitration in London earlier this year.
For its part, 1MDB and Malaysian leader have argued that it plans to pay, but has been hampered by regulatory formalities.
The regulatory explanation equates to a «dog ate my homework» excuse, since 1MDB has been the subject of intense scrutiny by prosecutors in the U.S., Singapore and Switzerland for more than a year.
By contrast, efforts to investigate in Malaysia have reportedly been stifled by the government, which has been linked to the scandal.
On Wednesday, Abu Dhabi’s London-listed fund International Petroleum Investment (IPIC) said it would give 1MDB until the end of this month to settle up – but not without a guarantee.
«This extension is subject to the Ministry of Finance Inc. and 1MDB making payment of not less than US$310,000,000 of the full amount due on or before 12 August, 2017,» IPIC said in a regulatory disclosure.
Ex-Fund Head Jailed
The debt break from IPIC – now part of the larger Mubadala fund – gives 1MDB just until Friday to cough up a first tranche.
Abu Dhabi, which has been drawn deeper into the 1MDB scandal through several high-ranking functionaries including U.S. ambassador Yousef Al Otaiba, isn’t part of U.S.-led global investigations.
The emirate has reportedly imprisoned the former head of IPIC, Khadem Al-Qubaisi, and another finance executive, both alleged to be linked with wrong-going at Swiss private bank Falcon, which Abu Dhabi owns.