1MDB: Limited cross defaults after IPIC fails to make bond payments

PETALING JAYA: 1Malaysia Development Bhd has confirmed that Abu Dhabi’s International Petroleum Investment Company (IPIC) has not made an interest payment of US$50.3mil (RM196.3mil) as required under the terms of a binding term sheet executed on May 28, 2015 but says that there is no cross default on its other remaining debt, namely the US$1.75bil 1MDB Energy Ltd notes and the US$3bil 1MDB Global Investments Ltd notes.

Under the binding term sheet, 1MDB said IPIC assumed the obligation to pay the interest and the principal for its US$1.75bil bond due 2022, issued by 1MDB Energy (Langat) Ltd (Langat notes).