1MDB to explain interest default to US$ bondholders

Kuala Lumpur

1MALAYSIA Development Bhd, the state-owned investment company that defaulted on a US$1.75 billion bond last month following a dispute with a co-guarantor, is reaching out to US dollar bondholders to explain why it didn't pay the interest on the notes.

A call to holders of its dollar-denominated securities will take place on May 23, 1MDB said in an e-mailed statement on Monday. The Kuala Lumpur-based firm appointed Alvarez & Marsal Asia as its financial adviser and DF King Ltd, an Orient Capital company, to carry out the bondholder identification and registration process.