Recent flashback "US1b payment from IPIC is not a loan or bail out: 1MDB" NST 31 May 2015Just sighted this,
“That is absolutely not the case. This is a business transaction; not a loan, not any kind of debt and not a bail out.
“It is an initial payment as part of a broader agreement to comprehensively address the various financial asset and liability transactions between IPIC, Aabar and 1MDB, further details of which will be announced in due course,” 1MDB President/Group Executive Director Arul Kanda in a statement today.
1MDB Debt Settlement Arrangements
On 28 May 2015, International Petroleum Investment Company (IPIC), Aabar Investments PJS (Aabar), Minister of Finance, Inc., Malaysia (MOF) and 1Malaysia Development Berhad (1MDB) entered into a binding term sheet that provides for the following principal matters:· on 4 June 2015, IPIC provided US$1 billion to 1MDB for 1MDB to utilise immediately to settle certain of its liabilities (the Cash Payment);· from 4 June 2015, IPIC has assumed the obligations to pay (on an interim basis) all interest due under two IPIC guaranteed 1MDB financings amounting to US$3.5 billion in aggregate principal amount (the Notes);· upon the completion of the transfer of assets as described below, IPIC will directly assume liability for all payment obligations under the Notes (the Assumption of Debt) and forgive certain financial obligations of the 1MDB Group to the IPIC Group (the Debt Forgiveness); and· by 30 June 2016, IPIC is to have received a transfer of assets with an aggregate value of an amount which represents the sum of the Cash Payment, the Assumption of Debt and the Debt Forgiveness.1MDB and MOF have agreed to perform the obligations contemplated in the binding term sheet and to indemnify IPIC and Aabar for any non-performance, and vice versa.IPIC has met the Cash Payment and will meet the interim interest payments under the Notes from existing liquidity available to IPIC.
This information is provided by RNSThe company news service from the London Stock Exchange
From London Stock Exchange below.
Go to RNS link here and search "IPIC". Click "1MDB Debt Settlement Arrangements" from search window which links here.
"by 30 June 2016, IPIC is to have received a transfer of assets with an aggregate value of an amount which represents the sum of the Cash Payment, the Assumption of Debt and the Debt Forgiveness."
Loan a definite yes, kind of debt maybe not now, bailout a definite yes.
Are the above authentic? Are the debt settlement arrangements True or False?
The very next day of the debt settlement arrangement,
“On 29 May 2015, the Ministry of Finance announced 1MDB’s plan to repay a US$975 million (RM3.6 billion) loan to a syndicate of international banks.
“Today, we are pleased to confirm that the loan has been fully repaid. This RM3.6 billion repayment reflects 1MDB’s commitment to reducing its debt levels, in line with the rationalisation plan approved by Cabinet,” 1MDB president Arul Kanda said in a statement today - MalayMail Online 8 June 2015