Our Restructuring and Advisory Division contribute to UAE settlement in 1Malaysia Development Berhad (1MDB) case

Abu Dhabi’s International Petroleum Investment Co (IPIC) and its unit Aabar Investments PJS have agreed to pay $1.8 billion to settle a legal dispute over the fraud against Malaysian state fund 1Malaysia Development Berhad (1MDB).

Our Restructuring and Advisory Division managing director and Caribbean lead, Angela Barkhouse, and chief executive Carl Jackson, have been appointed since early 2021 alongside Stephen Baker of the law firm Baker & Partners for 1MDB and SRC International Sdn Bhd. Ms Barkhouse and Mr Baker are pleased to have contributed to the recent settlement discussions. 

Malaysia in 2018 had filed a challenge in a London court against a settlement agreement between 1MDB and IPIC that had been negotiated a year earlier during the premiership of former leader Najib Razak.

Najib was sentenced to 12 years in jail last year after being found guilty in a 1MDB-related corruption case.

In its challenge, Malaysia had argued that the 2017 settlement was procured by fraud. The finance ministry said on Monday the Abu Dhabi companies, 1MDB and Malaysia’s Minister of Finance (Incorporated) had reached a settlement in respect of proceedings in the London Court of International Arbitration and the London High Court.

“With this settlement, Malaysia and Abu Dhabi look forward to continue working together for the prosperity and economic benefit of both countries in the future,” the ministry said in a statement.

Malaysia’s 1MDB is the subject of corruption and money-laundering investigations in at least six countries.

Our Restructuring and Advisory Division’s Angela Barkhouse has been appointed alongside Stephen Baker of law firm Baker & Partners in the investigation and recovery of stolen sovereign wealth working with key stakeholders and their legal counsel in Malaysia. An estimated $7.65 billion was invested by 1MDB and SRC with the majority of funds alleged to have been misappropriated by high-level officials of the fund and their associates between 2009 and 2014.  Our Restructuring and Advisory Division and Baker & Partners look forward to continuing their recovery efforts on behalf of 1MDB.