1MDB missed 12 noon-deadline today for US$602.75m payment to (IPIC)
payment due 12 midnight, New York time July 31.
exact reason for 1MDB's delayed payment is not known
US$602.75m was 1st tranche of two due to IPIC.
remaining US$602.725 million due by year end.
My comments : 'exact reason for 1MDB's delayed payment is not known'??
First of all it is not a 'delayed' payment.
It is a non-payment.
The two are not the same.
Well the immediate reason for the non payment is obvious.
1MDB has no money to pay that RM2.6 Billion.
Whatever their reasons, this non-payment by 1MDB is deliberate.
What is behind their deliberation?
I believe it has to do with those 'certain undertakings and indemnities' which have been agreed to and signed by 1MDB AND our MoF Inc in favour of IPIC.
To keep it simple, lets call them "guarantees".
If 1MDB cannot pay (for whatever reason) then those "undertakings and indemnities" aka guarantees will kick in.
Meaning IPIC can call in on those "guarantees". The "guarantor" will pay.
And who shall the guarantor be?
That will most likely be you and me folks.
Kita bayar lah.
The legal documents will most probably allow 1MDB some cure period to pay up (during which penalty interest will most likely be charged - thus increasing the cost to us the taxpayer).
Failing the 'cure period', then IPIC will send a notice to the guarantor (aka the giver of the undertakings) to pay up.
So after the cure period is over, the 'guarantor' will quietly make the RM2.6 billion payment. Again that will be you and me.
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