• December 12, 2017
    Last updated 1 minute ago

energy

Merger won’t have any impact on dispute with Malaysia’s 1MDB

International Petroleum Investment Company is seeking $6.5b from the troubled fund

17:01 June 29, 2016

Abu Dhabi: International Petroleum Investment Company (Ipic)’s merger with Mubadala will not have any impact on the company’s dispute with Malaysian state fund 1MDB.

“I don’t think the merger will take away any of these rights of the companies on the claims. This will not be a deciding factor,” said Mohammad Ali Yasin, managing director of NBAD securities.

Abu Dhabi fund has asked a London court to arbitrate over a debt restructuring in which Ipic is claiming about $6.5 billion (Dh23.6 billion).

The company in a statement this month said the failure of 1MDB and the Malaysia’s Ministry of Finance to perform their obligations, cure their defaults or put forward acceptable proposals has left it in the position where it must pursue its claims in arbitration.

“The claim will be determined by an arbitral tribunal that will comprise of three arbitrators,” Ipic said.

Ipic entered into an agreement with 1MDB in May 2015 to provide the Malaysian fund $1 billion to settle some liabilities in exchange for a transfer of assets, and assume interest obligations on $3.5 billion of debt. 1MDB and Malaysia’s finance ministry “are in default” on the terms of a binding term sheet, a report by Bloomberg said quoting Ipic.

Ipic has investments in more than 18 companies across the globe including in Austria’s OMV, Spanish energy company Cepsa, Pakistan’s Parco and Borealis.