A Berhad's net assets based on the latest published or announced financial statements is RM100 million. A Berhad has procured a credit facility of RM8 million from a bank and has withdrawn RM5 million from the facility as at 30 August 2009. On 30 August 2009, A Berhad defaults in the repayment of a monthly installment of RM100,000. As a result, the bank recalls the credit facility and demanded that A Berhad repays the bank the total outstanding sum due and owing under the credit facility amounting to RM5 million.
In this case, what is the "total amount outstanding of the defaulted credit facility" referred to in Rule 9.19A(1)(a) of the ACE LR in determining whether A Berhad is required to announce the default under Rule 9.19A of the ACE LR?
The “total amount outstanding of the defaulted credit facility” referred to in Rule 9.19A(1)(a) of the ACE LR is the total outstanding sum due and owing under the credit facility when the bank issued the demand, i.e. RM5 million.