KUALA LUMPUR: 1Malaysia Development Bhd and International Petroleum Investment Company (IPIC) have agreed on a settlement of the arbitration proceedings at the London Court of International Arbitration.
1MDB said on Monday that as per the settlement, 1MDB will, amongst others, make certain payments to IPIC and will assume responsibility for all future interest and principal payments for two bonds issued by 1MDB Group companies due in 2022.
“These obligations will be met by 1MDB, primarily via monetisation of 1MDB-owned investment fund units.
“1MDB is pleased to confirm that a first tranche monetisation of approximately US$50mil has been received, in cash.
“This arbitration settlement and monetisation of investment fund units represents the resolution of a significant challenge, and is a major part of the 1MDB rationalisation plan, which is now at its final stages of conclusion,” it said.