Friday, April 29, 2016

1MDB IPIC BOND DEFAULT PRESS SPAT AND THE HALF PAST SIX CEO LAWYER

Press headlines over here, MalayMailonline "1MDB says in ‘limited’ default after IPIC fails to make bondpayment" and StarOnline "1MDB: Limited cross defaults after IPIC fails to make bondpayments
Press headline over there, "1MDB defaults on bond after missing $50m payment amid Ipic dispute"

See the difference?

Over here, IPIC has defaulted. Over there 1MDB is the defaulter.

Definition of Obligor:
A person or entity who is legally, or contractually, obliged to provide some benefit or payment to another. In the financial context, the term obligor refers to a bond issuer, who is contractually bound to make all principal repayments and interest payments on outstanding debt. The recipient of the benefit or payment is known as the obligee.

Definition of Guarantor:
A guarantor is a person who guarantees to pay for someone else's debt if he or she should default on a loan obligation. A guarantor acts as a co-signor of sorts, in that they pledge their own assets or services if a situation arises in which the original debtor cannot perform their obligations.

So there and here we are, in matters of the press spat.

Which brings us to the half past six lawyer.

With the definitions above a layman can easily understand what it means. Any qualified lawyer worth his salt would and must understand the same.

1MDB CEO and qualified lawyer, Arul Kanda, has said so himself, from this Reuters report,
"The guarantee is clear and there is no dispute - IPIC said they will pay under the guarantee and 1MDB as the borrower is the primary obligor," said Arul. 
While a layman may understand the definitions above, "obligor" is not a commonly used word.
But this half past six lawyer is quoted to have said it himself. Surely and admittedly, he must at the very least been aware and knows 1MDB is primarily obligated to make the interest payment.
I won't even bother to provide the definition of "primary".
And by the way Mr Arul, your "curveball" in Bloomberg or anywhere else in the whole wide world, is NEVER ever from left field.

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