Malaysia's state fund denies Abu Dhabi's IPIC pulling out of debt plan

1Malaysia Development Bh agreed to restructure the UAE firm's debt three months ago
Malaysia's state fund denies Abu Dhabi's IPIC pulling out of debt plan
By Reuters
Wed 26 Aug 2015 11:07 AM

Malaysian state fund 1Malaysia Development Bhd said on Wednesday that it strongly denies that Abu Dhabi's International Petroleum Investment Co (IPIC) is considering pulling out of a plan to help restructure 1MDB's debts.

"We in fact confirm that 1MDB remains engaged in discussions with IPIC, to conclude the transaction per the terms as officially announced by IPIC to the London Stock Exchange on 10 June 2015," it said in a statement.

Citing a source, Singapore's Business Times newspaper reported earlier in the day that IPIC is considering withdrawing from the plan to help restructure 1MDB's debts, barely three months after agreeing to do so. The report pushed down the Malaysian ringgit.

The Malaysian fund, whose advisory board is chaired by Prime Minister Najib Razak, has been dogged by controversy over its $11 billion in debt and is the subject of multiple investigations amid allegations of financial mismanagement and graft.

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