KUALA LUMPUR, Oct 31 — The debts accumulated by 1Malaysia Development Berhad (1MDB) was due to cash flow “mismatch” because the company failed to be publicly listed, according to 1MDB president Arul Kanda Kandasamy.
He said 1MDB’s failure in carrying out its initial public offering (IPO) resulted in its inability to pay back its debts on time.
“Debts was the basis for 1MDB. When you use debts, there is a need to pay back the debt and service the principle.
“If you do not meet debt repayments, the repercussions are very high. There was a cash flow mismatch because of the failed IPO. The company faced a big challenge to pay back the debt,” Arul Kanda told reporters at a press conference today.
He added that 1MDB was selling off its assets and that it will be able to meet its debt repayments.