"Binding Agreement" Or "Engaged In Discussions"? - 1MDB's Multi-Billion Dollar Muddle
26 Aug 2015
“We note a speculative article carried by The Singapore Business Times this morning which relies on a conversation with an unnamed source to suggest that 1MDB’s binding agreement with IPIC is ‘as good as off'” [stated 1MDB].
“1MDB strongly denies this unproven allegation and 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 June 10 2015,”
“1MDB is disappointed that a hitherto respectable and licensed publication such as the Singapore Business Times appears to carry a story based solely on unproven remarks by an unnamed individual. Such speculative reporting, which has no grounding in the facts, is clearly unprofessional and unnecessary.”
A Term Sheet is not an agreement
“In June, 1MDB signed a [term sheet] agreement with IPIC of Abu Dhabi. IPIC, a company owned by the Abu Dhabi government, is valued at US$60 billion. And the [term sheet] is for IPIC to take over 1MDB’s debts, which actually have bveen guaranteed by IPIC. The principal and debts come to about US$3.5 billion.
IPIC has also paid US$1 billion, which we have used towards the debt settlement”[transcript]
“…. 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 June 10 2015“