Kuala Lumpur (AFP)
Malaysia's crisis-hit state investment fund 1MDB has been given an extension until the end of August to pay over $600 million to Abu Dhabi to settle debts, the emirate's sovereign wealth fund said Tuesday.
About half must be paid by August 12 with the rest due by August 31, said the fund, the International Petroleum Investment Company (IPIC), after 1MDB missed another deadline to pay.
1MDB and its founder, Prime Minister Najib Razak, are battling allegations that billions were looted from the fund in complex overseas deals that are being investigated by authorities in several countries.
Both the fund and Najib have vehemently denied wrongdoing.
1MDB agreed in April to pay IPIC about $1.2 billion to settle debts, with half due to be paid at the end of July and the rest by the end of the year.
1MDB missed the first deadline last week and was given five more days to make the payment or face additional obligations, but it was also unable to meet the second deadline.
IPIC said in a filing to the London Stock Exchange that it had granted 1MDB "until 31 August 2017 to complete the performance of the payment obligations", with at least $310 million to be paid by August 12.
Irwan Serigar Abdullah, chairman of 1MDB's board of directors and Malaysia's treasury secretary-general, confirmed the controversial fund had been given an extension.
When it missed the first deadline, 1MBD said it was awaiting fresh funds and pledged to make the payment in August.
1MDB and the Abu Dhabi fund had been involved in a dispute that extended to repayments on two sets of bonds issued by the Malaysian fund.
In April 2016 1MDB defaulted on $1.75 billion in bonds after missing an interest payment of $50 million.
In June that year Abu Dhabi announced it was seeking $6.5 billion from the Malaysian fund through international arbitration.
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