If you've been following the story, you know that on 11 January, IIG Funding Limited was to make a Periodic Distribution Payment (equivalent to interest under a conventional bond) of US$3,353,062.50 on its US$ 200 Million Trust Certificates "Sukuk Al Mudarabah" due 2012.
It did not.
At the time IIG (which is the source of the payment) advised it intended to pay on the 19th.
The payment was received on 20 January.
Under the terms of the Certificates a three day delay in payment is grounds for the dissolution of the Trust. Once the three days passes, even if IIG makes the payment as it did in this case, the Certificateholders have the right to dissolve the murabaha transaction. A dissolution is the same thing as an acceleration of a conventional bond: IIG would be legally obliged to repay the Certificates in full - some US$200 million in principal plus any Periodic Distribution Payment ("interest") due.
However, just as with a conventional bond, the Certificateholders must vote to exercise their right to accelerate payment.
My guess is that they will not.
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