IPIC to pay interest only if 1MDB defaults
Coupon payment on 1MDB bonds hangs in the balance as spat with Abu Dhabi state-owned entity worsens
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Anita Gabriel
Singapore
AS the grace period for a US$50.31 million interest payment on bonds issued by 1Malaysia Development Berhad drew nail-bitingly close and the troubled firm's discord with Abu Dhabi's International Petroleum Investment Company (IPIC) over who should pay for it flared up, the Gulf emirates state-owned entity made its next move in what is being dubbed an "epic game of poker" in the corporate circles.
In a tit-for-tat move which signalled the souring of a once-congenial rapport between two state-owned entities, IPIC said in an announcement to the London Stock Exchange that it would make the coupon payment to holders of the notes "but only after 1MDB defaults on its payment obligations in respect of the notes".
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