In a statement, 1MDB said the interest was payable on the semi-annual interest payment date of April 18, 2016, in respect of the USD1.75 billion 5.75% notes, due 2022, issued by 1MDB Energy (Langat) Limited.

“On June 4, 2015, IPIC assumed the issuer’s obligation to pay the interest due under the notes, in exchange for certain undertakings to transfer assets and cash to IPIC,” it said.

However, a dispute arose between IPIC and the issuer concerning, among others, the issuer’s obligations to IPIC and IPIC’s corresponding obligations.

“Consequently, as of the time of this statement, the issuer understands IPIC has not paid the interest,” it said.

“1MDB wishes to make clear that it and its group entities will meet all of their other obligations under any other financing arrangements and have ample liquidity to do so,” it added.

– BERNAMA