KUALA LUMPUR, Nov 14 — State-owned 1Malaysia Development Berhad (1MDB) will have a “happy ending” with at least RM10 billion worth of assets after settling its RM42 billion debt pile, Barisan Nasional Backbenchers Club (BNBBC) chairman Tan Sri Shahrir Samad predicted today.

The Johor Baru MP said he is convinced that 1MDB will prevail over the intense scrutiny, based on his personal communication with its president Arul Kanda Kandasamy over the controversies plaguing the company.

“Like all things in life, we look at the end game. Whether it is a happy ending or a bad ending. I’m thoroughly convinced that 1MDB will have a happy ending, from my interactions with Arul and what i know of 1MDB as a BNBBC chief.

“As you see, even after disposing the debts, 1MDB will still have residual assets between RM10 to RM12 billion. That’s their modal structure. It’s a debt based investment. So the yardstick should be the assets they have,” he told reporters after attending a public forum on 1MDB here.

The forum had Arul Kanda explaining the 1MDB issue to mostly Umno members. The event was also organised by the party.

During the forum, Arul said 1MDB’s rationalisation plan, which involves the sale of most of its prized assets, would help the fund settle all of its RM42 billion debt.

He said even after the plan is complete, 1MDB will still own assets in the form of Bandar Malaysia land in Sungai Besi and the Tun Razak Exchange (TRX) that amounted to RM10 to RM12 billion.

He said 1MDB only needed to sell about 60 per cent of the Bandar Malaysia land and less than 50 per cent of the TRX plots to help pay off its debt.

Last month, Arul Kanda said the company’s debt-reduction measures were proceeding smoothly and predicted the pile being cut down within six months.

Four companies, Tenaga Nasional Bhd, YTL Power International Bhd, Malakoff Corp Bhd and CI Holdings Bhd have been reported to have signed non-disclosure agreements with the advising bank, Maybank Investment Bank Bhd, and are in various stages of discussions to acquire 1MDB’s power production unit, Edra Global Energy Bhd.

1MDB is also reported to have received 12 bids for development partners in the Bandar Malaysia project, and is expected to shortlist preferred bidders in the near term.

The TRX project that has been touted as 1MDB’s financial centre, has attracted four investors, namely Australia’s Lend Lease group, Indonesia’s Mulia Group, Lembaga Tabung Haji and Affin Bank Bhd.