Both are backed by their respective Governments of UAE and Malaysia.
Reuters reports "1MDB boss says the Malaysian fund and IPIC face cross default".
Between the two feuding corporate entities, IPIC, being a public listed entity, would be more than aware the ramifications the default will have on the Company and its parent the UAE government.
In this duel and battle of wits, without a negotiated solution, the one who blinks first will be the one that will make the interest payment.
"On its website this week, 1MDB's president said the fund expects bondholders will be paid. Some ratings firms say IPIC will likely fulfill its role as guarantor and pay the interest, if called upon by the bond's trustee" - Nasdaq