Malaysia's 1MDB at Risk of Default as Partner Ends Bond Support
- 1MDB in dispute with Abu Dhabi sovereign wealth fund IPIC
- 1MDB's dollar bond prices decline to lowest since November
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Malaysia’s state investment company, already a target of global investigations into allegations of money laundering and embezzlement, has another major problem: It now faces the risk of sinking into default.
1Malaysia Development Bhd. failed to make a payment of more than $1 billion in connection with a loan made last year by Abu Dhabi’s sovereign wealth fund, according to a London stock exchange filing. That means that 1MDB and Malaysia’s finance ministry “are in default,” Abu Dhabi’s International Petroleum Investment Co. said.