Malaysia's 1MDB denies Abu Dhabi's IPIC pulling out of debt restructuring plan

Men walking past a 1MDB billboard in Kuala Lumpur, Malaysia.
Men walking past a 1MDB billboard in Kuala Lumpur, Malaysia.PHOTO: REUTERS

KUALA LUMPUR (REUTERS) - Malaysian state fund 1Malaysia Development Bhd said on Wednesday (Aug 26) 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 to a new all-time low against the Singapore currency and a fresh 17-year low to the US dollar.

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