UAE's IPIC says paid interest after 1MDB default

State-owned Abu Dhabi company says it is now owed $1.2bn plus accrued interest
UAE's IPIC says paid interest after 1MDB default
1 Malaysia Development Berhad (1MDB). (MANAN VATSYAYANA/AFP/Getty Images)
By Reuters
Wed 11 May 2016 01:39 PM

Abu Dhabi's state-owned International Petroleum Investment Co (IPIC) said on Wednesday that it had paid interest of $52.4 million due on bonds guaranteed by troubled Malaysian state fund 1MDB, after 1MDB defaulted on them.

IPIC said this marked a third default by 1MDB. The Abu Dhabi company said it would step up its demands for 1MDB and the Malaysian government to compensate IPIC for its exposure to 1MDB; it said it was now owed $1.2 billion plus accrued interest.

1MDB has been disputing its obligations to IPIC under a debt restructuring agreement involving the companies last June.

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