1MDB Default Deters Funds as Malaysia Can't Put Scandal to Bed
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Najib Razak.
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As Malaysia’s state-owned investment company reaches out to bondholders to explain why it has defaulted, some investors say they can’t wait to hear the end of the saga.
1Malaysia Development Bhd., which defaulted on dollar-denominated bonds last month and faces another coupon payment Wednesday, said it plans a call on May 23 to explain its dispute with a co-guarantor and how it plans to meet future obligations. Returns on debt from Malaysian issuers have cooled amid probes into financial irregularities at 1MDB, whose advisory board has been headed by Prime Minister Najib Razak.