IPIC and Aabar Investment PJS are seeking to retrieve funds owed from a multi-billion-dollar financing agreement extended by the two companies to the state-owned 1Malaysia Development Berhad (IMDB). In April, IPIC went on the offensive against 1MDB, claiming that the state investment fund had failed to meet key provisions of the financing agreement. Now, IPIC has announced that it will be pursuing $6.5bn from 1MDB in the London Court of Arbitration: ‘The failure of 1MDB and [Malaysia’s Ministry of Finance] to perform their obligations, cure their defaults or put forward acceptable proposals has left IPIC in the position where it must pursue its claims in arbitration,’ said a statement filed by IPIC with the London Stock Exchange on Tuesday last week.

Firms appointed

Longtime legal advisor Clifford Chance will be supporting IPIC through the arbitration process under the leadership of Audley Sheppard QC and litigation partner Roger Best, Meanwhile, a London-based team from Weil, Gotshal & Manges will be advising 1MDB, including dispute resolution partner Jamie Maples, restructuring partner Mark Lawford and City restructuring head Adam Plainer. A statement from 1MDB had indicated that its legal counsel plans to submit a ‘robust response’ to the arbitration request prior to the 11 July deadline. The fund also stated that it remains able to honor its debt obligations.

Sources: Legal Week; Wall Street Journal