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1MDB says it has paid S$477 million under debt deal

KUALA LUMPUR Malaysia's crisis-hit state investment fund 1Malaysia Development Berhad (1MDB) said yesterday it has paid Abu Dhabi the equivalent of US$350 million (S$477 million) under a deal to settle its debts.

1MDB agreed in April to pay Abu Dhabi's sovereign wealth fund, International Petroleum Investment Company (IPIC), about US$1.2 billion with half due at the end of July and the rest by the end of the year.

But it missed both deadlines, AFP reported.

It was granted an extension to pay about US$600 million by the end of August, on the condition that half that amount was remitted by today.

This comes when the US Justice Department is conducting a criminal probe into 1MDB and has asked for a stay on its civil lawsuits in connection with the assets allegedly bought with money stolen from the scandal-hit state fund, Reuters reported.

A total of US$4.5 billion was misappropriated from 1MDB, according to dozens of civil lawsuits filed by the department in the past two years.

It wants to delay the civil proceedings as any disclosures would have an "adverse effect" on the US government's ability to conduct its criminal probe, said the latest court filing lodged at a district court in California on Thursday.

The criminal investigation was started before the civil lawsuits, the department said. It said the investigation was "global in scope", with crimes committed over several years.

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