Why did 1MDB miss the deadline for the Jimah East Power project?

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1MDB Missed Jimah East Power Project Deadline Due to Liquidity Problems

1 Malaysia Development Berhad (1MDB) is set to miss the deadline for its Jimah East Power project in Negri Sembilan due to ongoing liquidity issues. The Finance Ministry confirmed this development, highlighting the company's financial constraints.
Outstanding Loans to Local Banks

As of January 2015, 1MDB had accumulated RM5.037 billion in unpaid loans from local financial institutions. The Finance Ministry provided this figure in response to a query, although it did not detail the specific amounts owed to each bank or disclose the latest audit findings from Bank Negara Malaysia concerning these debts.
Broader Financial Liabilities

The company is reportedly facing significant financial challenges, with total liabilities estimated at RM42 billion. This situation has led to previous instances where 1MDB failed to meet interest payment deadlines on its debts, requiring extensions. For example, the company needed multiple extensions to settle a RM2 billion instalment from the previous year.
External Assistance for Debt Repayment

In at least one instance, external support was necessary to avoid a default. Tanjong PLC, associated with tycoon Tan Sri T. Ananda Krishnan, assisted 1MDB in securing refinancing to obtain the necessary funds to meet a RM2 billion instalment payment, which was eventually made in the month prior to the statement.

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Why did 1MDB miss the deadline for the Jimah East Power project?

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