KUALA LUMPUR (May 23): 1Malaysia Development Bhd (1MDB) today held an update call for the holders of its US dollar denominated bond following the default on the US$1.75 billion (RM7.15 billion) 1MDB Energy (Langat) Ltd papers (Langat Notes).

"During the call 1MDB provided a current update on the status of the bonds and outlined the next steps of the process.

"It discussed the background to 1MDB's decision not to make the interest payment on the Langat Notes and updated (the bondholders) on the progress 1MDB has made on its rationalisation plan," 1MDB said in a statement.

The troubled state investment fund said last month that a US$50 million interest payment due to holders of the Langat Notes was not made due to a dispute with International Petroleum Investment Co (IPIC).

The dispute between the Abu Dhabi sovereign fund and 1MDB came about after at least US$3.5 billion that 1MDB was supposed to pay to IPIC's subsidiary Aabar Investments PJS had "gone missing".

The money was instead diverted to a British Virgin Islands company bearing a similar name to Aabar Investments PJS, but having no relation to IPIC.

1MDB said today that it had reiterated at the update call of its commitment to working openly with IPIC to resolve the dispute.

"1MDB is (also) committed to an open dialogue with (the bondholders) throughout this process and there will be further update calls held in due course," it added.